This study explored the possibility of forming a coating layer containing alginic acid on the surface of a magnesium alloy to be used as a biomaterial. We formed a coating layer on the surface of a magnesium alloy using a plasma electrolytic oxidation process in an electrolytic solution with different amounts of alginic acid (0 g/L ~ 8 g/L). The surface morphology of all samples was observed, and craters and nodules typical of the PEO process were formed. The cross-sectional shape of the samples confirmed that the thickness of the coating layer became thicker as the alginic acid concentration increased. It was confirmed that the thickness and hardness of the sample significantly increase with increasing alginic acid concentration. The porosity of the surface and cross section tended to decrease as the alginic acid concentration increased. The XRD patterns of all samples revealed the formation of MgO, Mg2SiO4, and MgF2 complex phases. Polarization tests were conducted in a Stimulate Body Fluid solution similar to the body's plasma. We found that a high amount of alginic acid concentration in the electrolyte improved the degree of corrosion resistance of the coating layer.