Eventhough Fe-6.5 wt.% Si alloy shows excellent magnetic properties, magnetic components made of the alloy are not totally because of its extremely low ductility. In order to overcome this demerit of alloy, 6.7 wt.% Si alloy powders were produced by gas atomization and then post-processed to form magnetic cores. By doing so, the total core loss could be minimized by reducing both hysteresis and eddy current loss. From our experiments, we were able to achive a core loss of at 0.1 T and 50 kHz through proper processes and a permeability of 68 at low frequency.