Provided is a method of fabricating a semiconductor optical device for use in a subscriber or a wavelength division multiplexing (WDM) optical communication system, in which a laser diode (LD) and a semiconductor optical amplifier (SOA) are integrated in a single active layer. The laser diode (LD) and the semiconductor optical amplifier (SOA) are optically connected to each other, and electrically insulated from each other by ion injection, whereby light generated from the LD is amplified by the SOA to provide low oscillation start current and high intensity of output light when current is individually injected through each electrode.