Monacolin K-enriched ganghwayakssuk (Artemisia princeps Pamp.) was developed by fermentation with Monascus sp. Among the 15 Monascus spp. isolated previously from Monascus fermentation products, Monascus pilosus KMU108 produced 2,219 mg/kg of monacolin K during ganghwayakssuk fermentation with no detectable citrinin. The optimum concentrations of ganghwayakssuk and glucose determined from the response surface methodology (RSM) design were 2.2% and 3.8%, respectively. By applying these conditions, the monacolin K productivity was increased to 3,007 mg/kg after 15 days of fermentation. On the other hand, other characteristics such as the total content of flavonoids and phenolic compounds, and the antioxidant activity were relatively unchanged. Therefore, Monascus-fermented ganghwayakssuk is an excellent biomaterial for the development of functional foods because of its high level of monacolin K, known to lower cholesterol levels.