Transmutation of nucleon by gamma-ray is reviewed in this articled. We used the New Subaru storage ring combined with a small solid state laser to get a laser Compton gamma-ray of energies of 10 to 20MeV. Reaction rate of nuclear targets of gold and iodine were obtained by simultaneous measurement of neutron and particles. We show a feasibility of energy balance in gamma-ray transmutation cycle system. Future plant system by this method is also addressed.