The goal of this study was to develop a high value Korean traditional rice wine possessing the pharmaceutical functionality of Ganoderma lucidum. The effects of the fruiting body of G. lucidum on the alcohol fermentation of Korean traditional rice wine, yakju, were investigated. Optimal fermentation conditions for the preparation of G. lucidum-yakju consisted of the koji added at 15% and a fermentation period of 15 d at 25degreesC. The effects of the amount of G. lucidum added on the acceptability and functionality of G. lucidum-yakju were investigated. G. lucidum GL-1 yakju brewed by adding 0.1% G. lucidum into the mash showed the best acceptability and its angiotensin 1-converting enzyme (ACE) inhibitory activity and SOD-like activity were 63% and 42%, respectively, both of which are higher than those of yakju. The high ACE inhibitory activity of G. lucidum GL-1 yakju was found to result from ganoderic acid K in G. lucidum on the basis of physical and spectral data. However, the fibrinolytic activity and antioxidant activity of G. lucidum GL-1 yakju were very low, while tyrosinase inhibitory activity was not determined. From these results, G. lucidum GL-1 yakju may become a new functional Korean traditional rice wine with antihypertensive properties.