Commercialized production of onion vinegar, which has biological activities formed through alcohol and acetic acid fermentation, requires standardization. The objective of this study was to determine optimal conditions of sugar contents (11~15 °Brix) and agitation rate (100~300 rpm) of fermenter in the alcohol-acetic fermentation for producing onion vinegar. The alcohol and total acidity contents increased, whereas contents of total sugars decreased during alcohol fermentation. Contents of alcohol of 13 and 15 °Brix reactants were about 8% in 36 hr and total acidities of all samples were below 0.2% in 60 hr. During acetic fermentation, total acidity increased with highest value at 9 days (3.2% in 100 rpm), 10 days (4.1% in 200 rpm) and 8 days (4.3% in 300 rpm), respectively. From these results, sugar contents (13 °Brix) were measured for alcohol fermentation and agitation rate (300 rpm) for fast fermentation method of vinegar. The contents of total phenols, flavonoids and quercetin in onion vinegar were 33.3 mg/100 g, 3.0 mg/100 g and 2.0 mg/100 g, respectively. Onion vinegar showed an antimicrobial activity against Bacillus cereus, Staphylococcus aureus, Listeria monocytogenes, Salmonella typhimurium, Escherichia coli and Enterobacter aerogenes. Antioxidant effect of onion vinegar was 26.23% in DPPH radical inhibition and 58.58% in superoxide dismutase like activity, respectively. Fibrinolytic activity was 1.51 plasmin unit/mL in onion vinegar. In conclusion, onion vinegar processed by alcohol and acetic fermentation had nutritional values and potential biological activities.