In one embodiment, a method is disclosed for producing a composite magnetic material, wherein the non-magnetic binder comprises a layered compound having an insulation property and the non-magnetic binder and soft magnetic metal powder is admixed with each other, the admixture is compacted to a desired shape, and the compact is heat-treated under predetermined condition to form a thin insulating layer made of the insulating layered compound on the surface of the soft magnetic metal powder, thereby producing the composite magnetic material having a withstand voltage of 20 V or more.