As in many other country, the use of organic matter in Korea has long history. Farmers understand the value of organic matter as the source of plant nutrient and soil improving agent in general. Since 50 years ago, the sources of organic matter in paddy soils were compost, rice and barly straw, green manure, animal waste, fish and beancake, etc.. Application of green manures such as vetch and chinese milk vetch showed no significant effect on the yield of brown rice in paddy soil. On the other hand, the effects of compost and rice straw showed more significant on the yield of brown rice in paddy soil. Application of rice straw in rice cultivation is commonly made at different times between harvest, early spring and several weeks before transplanting. Considering the suitable paddy soil for application of rice straw under well to moderately well drained soil, the yield was pronounced more than poorly drained soil. Based on laboratory and field experimants, application of rice straw promoted the decrease of oxidation-reduction potential in well to moderately well drained soil. This results to be enhanced the release of some mineral nutrients,. such as potassium, calcium, silicon, and increase of availability of soil phosphorus. In the field experiments, results obtained from nitrogen fraction on the immobilization-mineralization of the tracer nitrogen applied in paddy soil,the amount and index of organic nitrogen incoporated in soil was more pronounced in rice straw application than control. Rice straw and its transformation products incoporated in the soil, provided the inflow of energy necessary to maintain heterotrophic microbes activities. Rice straw and its transformation products, especially soluble carbohydrate, enhanced the population of free-living heterotrophic $N_2$ - fixing microbes. Moreover, rice straw and its transformation products in paddy soil, enhanced the activities of soil enzymes such as dehydrogenase and urease.