In world trade, the vessel traffic in major routes has been congested due to the rapid increase of cargoes and shipping tonnages. The patterns of vessel traffic have also been complicated and diversified. Therefore it was necessary that the Vessel Traffic Service(VTS) should be established in order to enhance the safety of navigation, to prevent the loss of life and damage to the environment. The first advanced radar surveillance system(LevelIII-VTS) was introduced in Pohang, Korea in 1993 and in 13 other ports later. While the hardware of Korea VTS is equal to that of an advanced country, the software, specially the operation manual, the recruitment and education of VTS operator, and the VTS service area is behind that of Russia, USA, Germany, Hong Kong, Singapore and others. After researching and investigating. the VTS equipment and service area of many countries, and analyzing the IMO regulations relevant to VTS and the traffic pattern and accident of Pohang port, the most efficient VTS service area should be established in Pohang. According to the analysis of the preceding studies and research on VTS, the worldwide VTS areas are recognized under the following conditions: First, the service area should be extended over at least radar coverage taking into account of traffic flow, traffic density, the degree of danger to navigation and harbour condition in order to provide all possible services. Second, the established service area should be subdivided and systematized to render reliable VTS services, such as the allocation of VHF frequency and reporting procedure in each area. In conclusion, the VTS service area of Pohang must be established and operated over 10 miles from shore(radar site) covering the radar coverage, so as to include the area of traffic congestion and high density traffic flow.