The new PGAA facility using diffracted neutron beam was developed in Korea. The basic characteristics of the facility were studied in detail. A general formalism of the k0 factor as extended to non-1/v absorber and arbitrary neutron spectrum was discussed and the actual data for Cd, Sm, Eu, Gd have been measured and determined successfully owing to the simple nature of the diffracted neutron spectrum. The k0 factors for B, N, Si, P, S and Cl were also determined and showed consistent results with previously reported ones. At an early stage, feasibility of boron concentration analysis and measurement of thermal neutron capture cross sections has been studied. The PGAA facility is now open to users. A considerable amount of beam time is already dedicated to studies on the elemental analysis.