A battery identification (ID) setting system effectively managing a plurality of batteries and a method of driving the same. The battery ID setting system having an external terminal includes a master battery management system (BMS) outputting ID setting signals, and a plurality of slave BMSs transmitting battery information signals containing absolute battery IDs and battery potential differences of batteries to the master BMS in response to the ID setting signals. The master BMS receives the battery information signals to assign and store the relative battery IDs corresponding to the absolute battery IDs of the batteries.