  We give a progress report of our new $a^{-1}\approx 3$ GeV quenched
calculation of kaon matrix elements with domain-wall fermion and DBW2 gauge
action. Our smaller lattice spacing allows us to address the effect of charmed
quark on the lattice. We show preliminary results of $B_K$ renormalized
non-perturbatively and $K\to\pi$ matrix elements.
