Flammulina velutipes, which is a white rot fungus, is a commercially important edible mushroom and is produced in large quantities with the help of an automated and mechanized cultivation system in Korea. F. velutipes has the lowest distribution rate among domestic cultivars, estimated at about 20 percent. As most white cultivars of F. velutipes produced and exported to Korea were introduced from Japan, farmers pay large amounts of royalties. Therefore, we have developed a new, purely domestic cultivar, “Baeke,” to substitute for Japanese cultivars, which has improved storage characteristics for export. Baeke was bred by mating two monokaryotic strains isolated from ASI 4216-18 (Hansol) and ASI 4217-26 (Baekjung). Baeke showed faster mycelial growth and higher mycelial density upon incubation for seven days at 25°C on PDA media than the control variety. The mycelial growth of Baeke was even maintained at 30°C unlike the control. The lengths of pilei and stipes in Baeke harvested in the optimal stage were 11.2±0.5 mm and 125±5.4 mm, respectively, and they were 11±0.5 mm and 141.9±5.7 mm, respectively, in the control harvested in the optimal stage. The yields of Baeke (257.4±13.5 g) and control (270.7±17.8 g) per 1,100ml in bottle cultivation showed no significant difference. Overall, our results showed that Baeke was at par with foreign varieties of Flammulina velutipes in terms of quality and yield and had a uniformly shaped fruitbody, which added to its commercial value.