Growing boy of studies focus on the letter transposition effect since it gives the information on how letters are coded and what variables are involved in the processes of word recognition. This review investigated various models on letter transposition effect. While most proposed models rely mainly on the bottom-up processes, evidences from various studies suggested the necessity of the top-down variables based on the cognitive processing mechanism. Especially, empirical evidences suggested that Hangul model should include a position specific processing mechanism based on onset, vowel, and coda of the Korean character.