A method of processing a video signal is disclosed. The present invention includes obtaining a DC (discrete cosine) transform coefficient for a current macroblock and partition information of a DC (direct current) component block from a bitstream, obtaining transform size information of each partition of the DC component block based on the partition information of the DC component block, performing an inverse DC transform or a Hadamard transform based on the transform size information of the partition of the DC component block, performing inverse quantization on a result value from the transform and an AC (alternating current) component, and reconstructing a residual block by performing an inverse DC transform on a result value from the inverse quantization, wherein the residual block includes a block indicating a pixel value difference between an original picture and a predicted picture.