Daegu Football Club was first established in 2002 and the side made their debut in the K League the following year. They joined the division, alongside Gwangju Sangmu Bulsajo, as part of an expansion to bring the league up to twelve active teams. At present, the mayor of Daegu serves as the club chairman, while Daegu Metropolitan City is one of the club's most significant shareholders.
Over the course of the team's first three K League seasons, Daegu made steady progress, finishing in 11th, 10th and 8th place, respectively. The 2006 season saw the club finish in 7th place, which remains, to date, their best ever performance over a whole league campaign.
So far, the club have failed to win any of the major trophies available to them and have never competed at the top of the K League. Their best performance in the domestic cup competitions came in the 2008 edition of the FA Cup, when they reached the semi final stage of the competition. In terms of minor trophies, the team lifted the 2006 Tongyeong Cup, a pre-season invitational tournament, which also included teams from China and Australia.
Ha Dae-Sung, Hong Soon-Hak, Kim Hyun-Soo and Oh Jang-Eun are amongst the most notable footballers to play for the club. All four of them also represented the South Korean national team. Some of the foreign players to wear the Daegu jersey over the years include names like Sandro Hiroshi, Eninho and Rahim Zafer.
Since their foundation, the team have played their home matches at Daegu Stadium, formerly known as Daegu World Cup Stadium and sometimes referred to as Blue Arc. The venue opened in 2001 and hosted several matches during the 2002 FIFA World Cup, as well as serving as the main venue for the 2011 World Athletics Championships. It is currently able to hold a maximum of 65,000 spectators.