A BLUP animal model genetic evaluation system was developed to evaluate milk yield. fat yield and fat percentage by taking into account characteristics of the Korean Holstein cattle population. Records of all lactations for each cow were included in the analysis. In order to he included in genetic evaluation, sire and dam of bulls should have two or more progeny in the identification file and imported hulls or semen should have records of daughter, in Korea. The numbers of records and animals tested and evaluated in Korea Animal Improvement Association and Dairy Cattle Improvement Center of National Livestock Cooperative Federation were 41.333 and 24,539, respectively. Solutions for fixed genetic group, random herd year season, additive genetic, and permanent environmental effects of the proposed models were obtained by the iterative conjugate gradient method for a sparse linear system. Fixed genetic groups included nationality of unknown parents, which were form Korea. U.S., Canada, and other countries. Instead of using the element of inverse of the coefficient matrix, accuracy of additive genetic effects were iteratively estimated a, in the USDA animal model except for excluding contributions from sire-herd distribution.