Since 1990, Agency for Defense Development is operating the non-magnetic laboratory for the development of key technology for the underwater magnetic stealth part, the research of the magnetic application weapons and the technical support for Korean Navy. Recently, we installed the new three-axis earth magnetic field simulator and the measurement system in the non-magnetic laboratory which is replacing the existing outdated facility. In this paper, we deal with the detailed design result of the earth magnetic field simulator and the measurement system. Also, we describe the effective method to separate the permanent and the induced magnetic field from the measured data for a scaled model ship using the earth magnetic field simulator and the measurement system.