This paper presents a control method of the modular multilevel converter - high-voltage direct current (MMC-HVDC) system to regulate grid voltage on the basis of the Jeju Island power system. In this case, the MMC-HVDC system is controlled as a static synchronous compensator (Statcom) to exchange the reactive power with the power grid. The operation of the MMC-HVDC system is verified by using the PSCAD/EMTDC simulation program. The Jeju Island power system is first established on the basis of the parameters and measured data from the real Jeju Island power system. This power system consists of two line-commutated converter - high-voltage direct current (LCC-HVDC) systems, two Statcom systems, wind farms, thermal power plants, transformers, and transmission and distribution lines. The proposed control method is then applied by replacing one LCC-HVDC system with a MMC-HVDC system. Simulation results with and without using the MMC-HVDC system are compared to evaluate the effectiveness of the control method.