To develop new therapy for prevention and treatment of hair loss is very important according to increase of the number of hair loss people. The aim of this study was to investigate the hair growth promoting effects of pectin lyase-modified red ginseng extract (GS-E3D). We examined antioxidant and anti-inflammatory effects, human hair dermal papilla cells (HHDPC) proliferation, and testoterone-induced 5α-reductase inhibitory effects. GS-E3D show not only 1,1-diphenyl-2-picryhydrazyl (DPPH) radical scavenging activity and xanthine oxidase inhibitory effects as an anti-oxidant property, but also lipoxygenase and hyaluronidase inhibitory effects as an anti-inflammatory property. Human hair dermal papilla cells proliferation by GS-E3D was higher than those of minoxidil or finasteride, using the positive controls. Moreover, GS-E3D exhibited 5α-reductase inhibitory activities after stimulating by testoterone. The present results indicate that GS-E3D has a potential to be as an hair growth promoting agent for cosmetic materials.