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Provided is an in vitro method for inducing a gastric fundus tissue comprising steps of (a) contacting a mammalian definitive endoderm cell, which may be derived from an iPS cell, with a wnt activator, a FGF activator, a BMP inhibitor, and retinoic acid to form a 3D posterior foregut spheroid, (b) suspending said 3D posterior foregut spheroid in a basement membrane matrix with a growth factor, a wnt activator, a EGF activator, a BMP inhibitor, and retinoic acid to induce a fundic lineage comprising fundic-type gastric organoids (hFGOs), (c) culturing said hFGOs with a wnt activator and a EGF activator, then with FGF 10, and (d) contacting the cultured hFGOs with a MEK inhibitor to form gastric fundus tissue comprising a functional fundic cell.