A new stepped septum-type waveguide circular polarizer (SST-CP) was developed to operate in the 230 GHz band for radio astronomy, especially submillimeter-band VLBI observations. For previously reported SST-CP models, the 230 GHz band is too high to achieve the design characteristics in manufactured devices because of unexpected machining errors. To realize a functional SST-CP that can operate in the submillimeter band, a new method was developed, in which the division surface is shifted from the top step of the septum to the second step from the top, and we simulated the expected machining error. The SST-CP using this method can compensate for specified machining errors and suppress serious deterioration. To verify the proposed method, several test pieces were manufactured, and their characteristics were measured using a VNA. These results indicated that the insertion losses were approximately 0.75 dB, and the input return losses and the crosstalk of the left-and right-hand circular polarization were greater than 20 dB at 220-245 GHz on 300 K. Moreover, a 230 GHz SST-CP was developed by the proposed method and installed in a 1.85-m radio telescope receiver systems, and then had used for scientific observations during one observation season without any problems. These achievements demonstrate the successful development of a 230 GHz SST-CP for radio astronomical observations. Furthermore, the proposed method can be applicable for observations in higher frequency bands, such as 345 GHz.