Analytical methods considering 3-D resistivity distribution, in particular, finite element method (FEM) were studied to improve the reliability of electromagnetic exploration. Integral equation, difference calculus, FEM and hybrid method are generally used as computational 3-D modeling method. FEM is widely used in various fields because FEM can easily handle complicated shapes and boundaries. However, in electromagnetic method, the assumption of continuous electric field is pointed out as important problem. The normal (orthogonal) component of current density should be continuous at the boundary between media with different conductivities, while this means that the normal component of electric field is discontinuous. In FEM, this means that current channeling is not properly considered, resulting in poor accuracy. Unless this problem is solved, FEM modeling is not practical. As one of the solutions, it is promising to specifically incorporate interior boundary conditions into element equation. 4 refs., 11 figs.