Treatment of [Li+@C60](PF6–) with 30% fuming sulfuric acid and subsequent hydrolysis gave hydroxylated derivative Li+@C60O–(OH)7. Its structure was deduced by IR, NMR, MALDI-TOF/FAB MS, and elemental analysis. Notably, the reaction of [Li+@C60](PF6–) was site-selective, giving a single major isomer (ca. 70%) with two minor isomers, in marked contrast to the case of empty C60. Furthermore, the results clearly indicate that the internal Li cation was strongly shielded by the surface dipolar hydroxyl groups, and thus it appears that the properties of endohedral fullerenes can be controlled by the external modification of the fullerene cage. Whereas Li+@C60 is relatively insoluble, Li+@C60O–(OH)7 was found to be highly soluble in polar solvents such as DMSO and DMF. The increased solubility is especially desirable for biological/medicinal assays and applications in such research fields.