In order to improve the permeability µ and magnetic flux density Bs of powder magnetic core, we characterized the iron powder compact coated with spinel ferrite particles. Their µ and Bs are higher than those of iron powder compact coated with nonmagnetic insulative films, having the same resistivity; B_2k of 1.4 T, density of 7.79 Mg/m³, and resistivity of 70 µΩ • m are achieved.