Large scale of fish kills by red tides has been occurred every year in coastal water fisheries of Korea. To suppress red tide spreading out over the south coastal water of the Korean Peninsula large amount of loess has been applied every year because loess is known to be effective in removing red tide organisms. Effects of loess application in ecosystem of underwater near sea shore were investigated with some physical characteristics of loess. Loess used for the red tide reduction consisted of very fine particles, of which size was mostly less than 0.1 mm. Particles of loess blocked light penetration, which is essential for the underwater ecosystem. Loess also pushed pH down by the hydrolysis activities of aluminium and iron It was found that underwater ecosystems where loess was applied near sea shore were devastated. Sea plants such as sea weeds were gone leaving only their roots. Clams and snails were dead under the loess dust blanket. And fishes were not found at all where loess has been sprayed lot long time. It was found that even if loess has some capacity to reduce red tide temporarily, loess application should be slopped to protect underwater ecosystems.