After isolating and screening the antifungal strain from the soil in Korea, effective antifungal strains were selected after testing the paper disk method. A strain was selected after it was found highly effective against Pyricularia oryzae and Pellicularia filamentosa and named as YJH-1. For morphological characteristics of YJH-1 were rod-shaped, Gram positive and has a good motility. The temperature for the growth of YJH-1 ranged from 15~50^oC, pH ranging from 3~10, and NaCl concentration of 6%. Physiological characteristics of YJH-1 showed positive catalase, negative oxidase, and negative propionate and also hydrolyzed starch. All sugar components except cellulose were utilized for the growth of YJH-1. The antifungal antibiotic was extracted three times using n-butanol from the culture broth of Bacillus sp. Bioassay-guided column chromatography with silica gel and Sephadex LH-20 yielded  62 mg of the original active compound from 1 litre of culture broth. The minimal inhibitory concentration (MIC) values were 25 µg/ml and 50 µg/ml against Pyricularia oryzae and Pellicularia filamentosa respectively. Based on results from the structure analysis of the antibiotic using MS, NMR and IR spectroscopy, the antifungal antibiotic was found to consist of only six of fructose.