The present invention relates to a video compression technology, and more particularly, to an effective flag-coding method and apparatus thereof by using a spatial correlation among various flags used to code a video frame. In order to accomplish the object, there is provided an apparatus for encoding a flag used to code a video frame composed of a plurality of blocks, the apparatus including a flag-assembling unit which collects flag values allotted for each block and produces a flag bit string, based on spatial correlation of the blocks, a maximum-run-determining unit which determines a maximum run of the flag bit string, and a converting unit which converts the bits included in the flag bit string into a codeword having a size no more than the maximum run by using a predetermined codeword table.