This paper presents a novel power-factor correction method using customer STATCOM which generally improves the power quality of electric customers. Customer STATCOM detects the reactive currents of a induction motor(IM) and so injects compensation currents which is in 180$^{circ}$ phase with load currents that the reactive power of IM is compensated. In particular, the paper proposes the general compensation current references in the synchronous coordinate system and makes converter output voltages using space-vector PWM. The compensation effect of customer STATCOM is confirmed through the simulation according to the operation condition of an induction motor (at no load and full load).