This paper investigates space and polarization multiplexing for multichannel transmission in a 120-GHz band wireless link system. The 120-GHz-band wireless equipment employs Cassegrain antennas with a gain of about 49dBi and cross-polar discrimination of 23dB. When each of two 120-GHz wireless links transmits a 10-Gbit/s data signal in the same direction over a distance of 800m, a bit error rate (BER) of below 10^-12 is obtained when the receivers are set 30m apart. When forward error correction and polarization multiplexing are used for each wireless link, we can set two wireless links within 1m of each other and obtain a BER below 10^-12. Moreover, we have experimentally shown that the rain attenuation of V- and H-polarization 120-GHz-band signal is almost the same.