Low quality fresh ginseng was fermented by Pheliuus linteus mycelium at $22^{circ}C$ for 30 days, then extracted by water solvent at $100^{circ}C$ for 180 min. On human normal cell lines (HEK293), cytotoxicity was about 10% lower in adding extracts of the fermentation ginseng than that from low quality ginseng. The fermented extracts also inhibited the growth of several human cancer cells. Among them, respectively, digestive organs related cancer cells, such as human stomach adenocarcnioma and human epithelial adenocarcinoma were most effectively inhibited up to 85% and 90%, respectively. Then, selectivities were in the ranges of 3 to 5, compared to 2 to 3 from low quality fresh ginseng. Generally, fermented ginseng extract showed higher anticancer activities as well as higher DPPH radical sacavening activity, possibly due to high contents of total phenolic components as 6.96 mg/g. It was very interesting that the fermented ginseng contained very higher contents of ginsenoside-Rc+$Rb_2$, compared to others in low quality fresh ginseng because of partition digestion of mycelium growth. The results can tell that low quality fresh ginseng can be utilized by the fermentation with Pheliuus linteus mycelium.