The amount of rice yield reduction due to inundation should be estimated to analyse economic efficiency of the farmland drainage improvement projects because those projects are generally promoted to mitigate flood inundation damage to rice in Korea. Estimation of rice yield reduction will also provide information on the flood risk performance to farmers. This study presented the relationships between inundated durations and rice yield reduction rates for different rice growth stages from the observed data collected from 1966 to 2000 in Korea, and developed the rice yield reduction estimation model (RYREM). RYREM was applied to the test watershed for estimating the rice yield reduction rates and the amount of expected average annual rice yield reduction by the rainfalls with 48 hours duration, 10, 20, 50, 100, 200 years return periods.