This experiments were conducted to study on the economic analysis of Phellinus spp.(Comercial name: Sanghwang mushroom). These results were as follows: Phellinus spp. can be cultivated about 4 years by one time inoculation. This mushroom has been cultivated by the method of burying log into the soil(BM) at the first time. Recently, however, the method of hanging log on the shelves in the house(HM) is used, because HM has more advantage than BM that HM can be cultivated more pieces of logs than BM. On the other hand, HM is required to invest more 5,678,230Won for the equipments than the BM. And also, HM is required 14,400 pieces(2.8 times) more log numbers than BM 5,000 pieces. Also, HM is required more 3,680,000Won to purchase log, 1,104,000Won to purchase spawn. The cost of production is required to 20,180,971Won for BM, and 37,953,825Won for HM. Accordingly, product cost of HM is 1.9 times higher than BM. The operating cost is required to 1,207,712Won for BM, and 24,075,432Won for HM. Accordingly, operating cost of HM is 2.0 times higher than BM. The net income is 580,940,000Won for BM, and 1,683,300,000Won for HM. Accordingly, net income of HM is 2.9 times higher than BM. The income is 589,040,000Won for BM, and 169,718,000Won for HM. Accordingly, income of HM is 2.9 times higher than BM. In conclusion, HM is required 2.8 times more logs. HM has 1.03 times more products per a piece of log. HM has 1.9 times more production cost, and 2.0 times more operating cost. As you read above, HM and BM have two different aspects. BM is required less investment cost than HM, but BM has lower income because of the different capacity of production. By the comparing those two methods, HM is resulted more efficient method for the producing mushroom. Only in the side of cash flowing, the cash expenditure of BM is required less money at first year. But it has no production at first year. BM would get the income after 2 years buring the logs. The cash expenditure of HM is required much money for the equipments and the logs at first year, but HM would get the income at first year.