A highly reliable control rod drive mechanism driven by an electric motor installed inside the reactor vessel (INV-CRDM) for a very small reactor has been designed. The INV-CRDM contributes to the compactness and simplicity of the reactor system, and can eliminate the possibility of a rod ejection accident. In the design, a new type of latch mechanism using an electromagnetic force to directly connect both of the shafts, one of which was the motor driven shaft and the other the control rod driving shaft, was applied so as to make the INV-CRDM very compact. The cable supplying current remained stationary, even when both of the shafts was moving. The required functions of the latch mechanism are to maintain an adequate latching force for the control rod shaft to move within a stroke of 370 mm, and to release the shafts in a shorter time than 0.2 s after a scram signal is received. A functional test with a model that approximately simulated the design was conducted to test the latching force and de-latching at room temperature. The test showed that the latching force increased with the current of the magnet coil, as did the de-latch time. The post-test analysis with a finite element analysis code revealed that the clearance between the two shafts greatly affected the latching force. With the same analysis method, the design analysis of the latch mechanism at a high temperature condition of 300 • C was conducted, and it was confirmed that the latch mechanism contained enough latching force.