This study was conducted to improve the food functional and sensory food quality of Hizikia fusiforme by the fermentation of lactic acid bacteria. Seven strains of lactic acid bacteria isolated from traditional Korean fermented food were inoculated and cultivated in H. fusiforme water extract. Among them, Lactobacillus brevis LB-20, isolated from Kimchi, was selected for further study by considering the results of bacterial growth, DPPH radical scavenging activity, and sensory evaluation. No significant differences in proximate compositions (moisture, crude protein, crude fat, and crude ash) were observed by the fermentation of L. brevis LB-20. The most dramatical change was the conversion from glutamate to ${gamma}$-aminobutyric acid (GABA) in H. fusiforme water extract fermented by L. brevis LB-20. The GABA content increased approximately 60-fold after 48 hr of fermentation. The bacterial fermentation also resulted in low-molecularization of the extract. The particle size of the fermented extract became approximately 4-fold smaller than that of the law extract. In addition, the analysis of volatile flavor compounds using GC/MS revealed that the bacterial fermentation dramatically removed off-flavors such as acetaldehyde, haxanal, diallyl disulphide and 1-penten-2-ol in the H. fusiforme extract.