Since 2000 severe rots on aerial and underground parts of paprika (Capsicum annum L.) has occurred in most surveyed glasshouses throughout the country. A total of 56 isolates of a fungus were consistently isolated from various plant parts such as fruit, stem, branch, and root collected from 16 farms in five provinces. Anamorph stage of the fungus was identified as Fusarium solani based on its morphological characteristics. However,the fungus readily produced a sexual structure of perithecia on infected plant tissues and on agar media. Since the fungus formed abundant perithecium by a single isolate, it was considered as a homothallic strain of Nectria haematococca, the teleomorph of F. solani. Irregularly globose perithecia with orange to red color formed sparsely to gregariously on dead tissues of fruits and basal stems at the late infection stage, which is a diagnostic sign for the disease. Perithecia ranged from 125 to 220 μm in diameter varied among isolates. Asci enveloping eight ascospores were cylindrical and measured 60-80×8-12 μm. Ellipsoid to obovate ascospores are two-celled and measured 11-18×4-7 μm. Ascospores were hyaline, slightly constricted at the central septum, and revealed longitudinal striations that is characteristic of the species. This fungus that has never been reported in Korea has previously become a threat to paprika cultivation because of its strong pathogenicity and nationwide distribution.