Summary Background Peroxisome proliferator‐activated receptor gamma coactivator 1 beta (PPARGC1B) is a co‐activator for intracellular receptors such as the estrogen receptor, PPAR, and glucocorticoid receptor, which are involved in asthma development. Objectives Genetic association of single‐nucleotide polymorphisms (SNPs) in the PPARGC1B gene with the risk of asthma and airway hyperreactivity (AHR) was investigated, as well as the functional effects of these SNPs on PPARGC1B gene and protein expression. Methods Direct sequencing of DNA from 24 Korean was performed to identify PPARGC1B SNPs. Genotyping was done in 264 controls and 949 asthmatics using single‐base extension methods. PPARGC1B mRNA levels were measured using real‐time PCR methodology. Luciferase and electrophoretic mobility shift assays (EMSA) were performed to functionally analyse PPARGC1B SNPs on promoter. Results Eighteen SNPs and one insertion/deletion polymorphism were identified, and seven SNPs were genotyped. No significant difference existed in the distribution of SNPs and haplotypes between the asthmatics and controls. However, the allele frequency of −427C>T and +102525G>A;R265Q showed a significant association with log‐transformed PC20 methacholine values in the asthmatics (P=0.005–0.0004). Real‐time PCR demonstrated higher PPARGC1B mRNA levels in asthmatics having −427CC allele than in those having −427TT or CT alleles (P=0.048). The ratio of the mRNA expression for each PPARGC1B exon4‐mRNA compared with the wild type was similar in peripheral blood mononuclear cells carrying the +102525G>A allele. Luciferase reporter assays revealed that −427C allele caused higher promoter activity than −427T allele. EMSA demonstrated that −427C allele exhibited stronger binding activity to a nuclear protein in 293T cells than did the −427T allele. Conclusions and Clinical Relevance Polymorphisms of −427C>T on the promoter and those of +102525G>A on exon 5 of the PPARGC1B gene may affect the development of AHR through the modulation of PPARGC1B gene products. The PPARGC1B genotypes may serve as genetic markers for AHR. Cite this as: S.‐H. Lee, A.‐S. Jang, S. Woo Park, J. ‐S. Park, Y. K. Kim, S.‐T. Uh, Y. H. Kim, I. Y. Chung, B.‐L. Park, H. D. Shin and C.‐S. Park, Clinical & Experimental Allergy, 2011 (41) 1533–1544.