An endophytic bacterial strain YC5480 producing antifungal and phytotoxic compounds simultaneously was isolated from the surface sterilized root of Artemisia sp. collected at Jinju area, Korea. The bacterial strain was identified as a species of Pseudomonas brassicacearum based on its 16S rRNA gene sequence analysis and physiological and biochemical characteristics. The seed germination and growth of monocot and dicot plants were inhibited by culture filtrate (1/10-strength Tryptic Soy Broth) of the strain. The germination rate of radish seeds in the culture filtrate differed in various culture media. Only 20% of radish seeds germinated in the culture media of 1/2 TSB for 5 days incubation. Mycelial growth of fungal pathogens, Colletotrichum gloeosporioides, Fusarium oxysporum and Phytophthora capsici was also inhibited by the culture filtrate of the strain YC5480. An antifungal compound, KS-1 with slight inhibitory activity of radish seed germination at 1,000 ppm and a seed germination inhibitory compound, KS-2 without suppression of fungal growth were produced simultaneously in TSB. The compounds KS-1 and KS-2 were identified to be 2,4-diacetylphloroglucinol (DAPG) and 2,4,6-trihydroxyacetophenone (THA), respectively.