Masan-Jinhae Bay, in Korea, is known for its frequent algal bloom outbreaks. This study was conducted in order to examine the environmental characteristics of the area, with the aim of identifying indicators that could be used to speculate about future algal blooms. The water temperatures and salinities in Haengam Bay, one of the small inner bays within Jinhae, appeared to re relatively higher than those in Masan and Jinhae bays, across most seasons. Furthermore, stratification begins to develop in all three regions from spring to summer as a result of the local heating effects and an increase in the efficient from the surrounding land. As a result, anoxic conditions appear near the bottom layer of the bay, leading to the deterioration of water quality, which has been identified as one of the causes of bloom outbreaks. Compared to Haengam and Jinhae bays, concentrations of DIN and DIP were remarkably higher in Masan Bay. However, the mean ratio of DIN to DIP was 3.3$sim$13.6 in all three regions throughout the year, suggesting that nitrogen can function as a growth-limiting factor for phytoplankton. The results of mathematical models showed that cumulative organic pollutants may be a trigger for direct algal bloom occurrences, since residual tidal currents appeared to be less than $3;cm;cdot;s^{-1}$. Furthermore, computed DO concentrations in the four small inner bays of Jinhae during the summer appeared to be $3;cm;cdot;l^{-1}$ indicating a hypoxic state. Likewise, computed Chl-a concentrations turned out to be more than $0.01;mg;cdot;l^{-1}$, indicating eutrophication across most seasons. Based on the overall results, Masan-Jinhae Bay appeared to possess a very high potential for algal bloom outbreaks at anytime during the year.