We attempted to screen lactic acid bacteria having probable safety, antibacterial and antioxidant activities and potential probiotic activity from ‘Meju’, and to improve the functionality of lactic acid-fermented ‘Sikhye’ by producing it using brown rice. We first selected six strains by measuring safety-related indicators such as their antibacterial activity against Bacillus cereus, biogenic amine production, hemolytic properties, and production of harmful substances and enzymes. The antioxidant activity, β-glucosidase activity, and probiotic characteristics of the six selected lactic acid bacteria were measured, and SCML 504 was selected as the final strain to act as a potential starter for manufacturing ‘Sikhye’. SCML 504 was identified as Lactobacillus brevis by 16S rRNA sequencing, and named L. brevis SCML 504 (KCCM 12526P). Finally, we manufactured the lactic acid-fermented ‘Sikhye’ from brown rice using SCML 504, and confirmed the fermentation properties. Functional characterization of the manufactured ‘Sikhye’ indicated that its DPPH radical scavenging and SOD activities were 66.42 and 69.25%, respectively. Free amino acid analysis revealed that the content of γ-aminobutyric acid was increased about two-fold compared to the pre-fermentation level. These findings are expected to be useful for the development of traditional Korean beverages with various functional properties via lactic acid fermentation.