We present a new experimental magneto-optical system that uses soft X-rays and describe its extension to time-resolved measurements using a free electron laser (FEL). In measurements of the magneto-optical Kerr effect (MOKE), we tune the photon energy to the material absorption edge and thus induce the resonance effect required for the resonant MOKE (RMOKE). The method has the characteristics of element specificity, large Kerr rotation angle values when compared with the conventional MOKE using visible light, feasibility for M-edge, as well as Ledge measurements for 3d transition metals, the use of the linearly-polarized light and the capability for tracing magnetization dynamics in the subpicosecond timescale by the use of the FEL. The time-resolved (TR)-RMOKE with polarization analysis using FEL is compared with various experimental techniques for tracing magnetization dynamics. The method described here is promising for use in femtomagnetism research and for the development of ultrafast spintronics.