The effect of red ginseng saponins (total saponins, Rbl- and Rgl- fraction of saponins) on the induction of $eta$-galactosidase in yeast, hccharomyces cereuisiae, was investigated to see that ginseng saponins would penetrate the cell membrane and have a function in a nucleus as steroid hormones do. To attain such a kind of purpose, a DNA fragment (685bp) containing GALI promoter was inserted into the sites of EcoRl and BamHl of polylinker region, upstream of lace gene of the plasmid YEp356 (7.966 Kb), and thus the resulting plasmid pGALl-lacZ is supposed to express $eta$- galactosidase only in the presence of galactose. The plasmid pGALl -lacZ was introduced into yeast, Ky106 (a leu2 ura3 his3 trp 1 Iys2), and the growth of the transformed cells was much slower in the presence of galactose than glucose. The effects of saponins on the specific activity of P-galactosidase from transformed yeast cells were detected. No significant increase was observed in case of total saponins, but the Rbl- or Rgl- fraction of saponins gave much higher increase in the activity. Maximum increase was observed as 35% in 10-3% of Rbl and as 75% in 10-1% of Rgl. These data suggest that ginseng saponins might be able to enter the nucleus and stimulate transcription. However, further studies to find out the putative saponin receptor are needed to confirm this possibility. Key words : Red ginseng saponin, $eta$-galactosidase induction, Saccharomyces cerevisiae.