Forty endophytic fungi isolated from ginseng plants were screened to identify metabolites that had antifungal activity against ginseng microbial pathogens. The metabolites from the fungi were extracted from the liquid culture filtrates using ethyl acetate and then evaluated in vitro for antimicrobial activity against ginseng pathogens (Alternaria panax, Botrytis cinerea, Colletotrichum panacicola, Cylindrocarpon destructans, Rhizoctonia solani, and Phytophthora cactorum). Six of the fungi (Colletotrichum pisi, Fusarium oxysporum, Fusarium solani, Phoma terrestris, unknown 1 and 2) showed effective antimicrobial activity against all or some of the ginseng pathogens, with the extract of P. terrestris showing the strongest antimicrobial activity. The extract also showed inhibitory activity against spore germination of the pathogens. Gas chromatography–mass spectrometry (GC–MS) analysis of P. terrestris extract revealed that forty-one compounds were present in metabolites containing mainly N-amino-3-hydroxy-6-methoxyphthalimide (32% of the total metabolites) and 5H-dibenz [B, F] azepine (7%). Treatment with P. terrestris extract also caused morphological changes and reduced expression of the genes involved in mycelial growth and virulence. Treatment also induced defense-related genes in detached Arabidopsis leaves that were inoculated with the pathogens. These results indicate the antimicrobial potential for use of metabolites extracted from the ginseng endophytic fungi as alternatives to chemicals for biocontrol.