The purpose of this study was to investigate the perception of health functional foods and preference for desired onion peel products. Questionnaires were distributed to 582 adults (34.2% male, 65.8% female) living in Gyeongnam province. The major information sources on biological effects of onions cited by respondents were TV/radio (37.1%), followed by nearby people (32.8%) and Internet (11.0%), in that order. Reducing cholesterol effect was the most important factor in terms of perception and concerns relating to biological function of onions. Over 73% of subjects had experience of eating processed onion products, and among all types of onion products, onion juice (53.5%) was the most frequently eaten. The most considered factors for processing onion peel-derived functional foods were taste & odor (29.6%), convenience of eating (28.9%), and nutrition value (27.1%), in that order.