We proposed a new $p^+/n^+$ gate locally-separated-channel (LSC) bulk FinFET which has vertically formed oxide region in the center of fin body, and device characteristics were optimized and compared with that of normal channel (NC) FinFET. Key device characteristics were investigated by changing length of $n^+$ poly-Si gate ($L_s$), the material filling the trench, and the width and length of the trench at a given gate length ($L_g$). Using 3-dimensional simulations, we confirmed that short-channel effects were properly suppressed although the fin width was the same as that of NC device. The LSC device having the trench non-overlapped with the source/drain diffusion region showed excellent $I_{off}$ suitable for sub-50 nm DRAM cell transistors. Design of the LSC devices were performed to get reasonable $L_s/L_g$ and channel fin width ($W_{cfin}$) at given $L_gs$ of 30 nm, 40 nm, and 50 nm.