A method for iteratively decoding a block turbo code includes: receiving a signal frame formed of a product code obtained by serially concatenating block codes; forming a reliability array for signal demodulation and initializing extrinsic reliability information; performing a complexity-reduced soft decision output Viterbi decoding algorithm for all of the codewords existing on a current axis and calculating extrinsic reliability using soft decision output information output as a result of the decoding; checking whether an iterative decoding completion condition is satisfied, and outputting a decoded value and terminating an iterative decoding process when the condition is satisfied; and normalizing reliability information when the condition is not satisfied, performing reliability equalization, and repeating the decoding process for a next axis.