This study examines the system and process of battery stored energy in vehicles and suggest the effective area for the use of V2G(vehicle-to-grid) from Jeju Smart Grid Demonstration Project. V2G means technology of electric power transmission from the battery of electric-drive vehicles to state grid. As for the increasing of effectiveness for demand-side control, V2G is a very good alternative. In the U.S., the utilization of electric vehicles is under 40% on average. In this case, we can use he battery of electric vehicle as role of frequency regulation or generator of demand-side resource. V2G, which is the element of Smart Transportation, consists of electric vehicle battery, BMS(battery management system), OBC(on-board charger), charging infrastructure, NOC(network operating center) and TOC(total operation center). V2G application has been tested for frequency regulation to secure the economical efficiency in the United States. In this case, the battery cycle life is not verified its disadvantage. On the other hand, Demand Response is required by low c-rate of battery in electric vehicle and It can be small impact on the battery cycle life. This paper concludes business area of demand response is more useful than frequency regulation in V2G application of electric vehicles in Korea. This provides the opportunity to create a new business for power grid administrator with VPP(virtual power plant).