A pathogenic fungus causing balloon flower root rot (Platycodon grandiflorum) was isolated from naturally infected roots. The microbial characteristics of the isolated microorganism were similar to those of Rhizoctonia solani. About 500 bacterial species from field soils were screened for a biological agent against the above-mentioned putative pathogen, and several bacteria with the antifungal activity were isolated. Among them, the isolated JS2 was identified as Pseudomonas aeruginosa. This strain showed a broad spectrum of antifungal activity potentially. When the antifungal substance was purified from a broth culture of JS2, it was identified as 2,4-diacetylphloroglucinol (Phl).