PEO (plasma electrolytic oxidation) was applied to modify the surface of AZ31 magnesium alloy in this study. The mixed solution of sodium hydroxide (NaOH) and sodium silicate (Na2SiO3) was used as the electrolyte, and 0 - 0.05 g/L of Ca-GP (Glycerol Phosphate Calcium salt) was added in the electrolyte as an additive. PEO treatment was conducted at a current density of 30mA/cm2 for 5 minutes using a DC power supply. The surface properties were identified by SEM, XRD and surface roughness analyses, and the corrosion resistance was evaluated by potentiodynamic polarization and immersion tests. In addition, the biocompatibility was evaluated by immersion test in SBF solution. As the concentration of Ca-GP was increased, the surface morphology was denser and more uniform, and the amount of Ca and the thickness of oxide layer increased. Only Mg peak was observed in XRD analysis due to very thin oxide layer. The corrosion resistance of PEO-treated samples increased with the concentration of Ca-GP in comparision with the untreated sample. In particular, the highest corrosion resistance was identified at the group of 0.04g Ca-GP through potentiodynamic polarization and immersion tests in saline solution (0.9 wt.%NaCl). During the immersion in saline solution, pH rapidly increased at the beginning of immersion period due to rapid corrosion, and then increase rate of pH decreased. However, the pH value in the SBF temporarily increased from 7.4 to 8.5 during the day, then decreased due to the inhibition of corrosion with HA(hydroxyapatite) formation.