Due to the saturation of the on-site storage capacity of spent nuclear fuel within a few years, dry storage facility should be introduced. However, it is unclear when to start operating the dry storage facility, so in case of Kori Unit 1, which is being decommissioning, the spent fuel must be stored in the spent fuel pool of another power plant. In addition, in the case of damaged fuel, it is impossible to transfer and store it with general handling methods. Therefore, a damaged fuel canister (DFC) should be able to handle damaged or failed fuel as intact fuel, and both wet and dry storage should be possible. The canister developed by Korea Hydro & Nuclear Power is designed to satisfy criticality, shielding, cooling performance, and structural integrity in accordance with NUREG-1536 and 2215. In addition, it can be handled as existing fuel handling devices rather than new handling tools. Fastening of the DFC lid and body in the spent fuel pool is possible with a hexagonal socket wrench, one of the fuel repair tools. And it is designed to facilitate visual identification of whether it is fastenedor not. The lifting method for transferring DFC to another facility is the same as the nuclear fuel lifting method. And a unique sealing and mesh structure of the lid and body is devised to completely block leakage of nuclear fuel fragments of 0.2 mm or more during vacuum drying for dry storage. The usability of DFC has been verified through test operation of the prototype, and it will be manufactured before discharging spent fuel for the decommissioning of Kori Unit 1.