The company began vertical integration in 1960 with the establishment of Samyang Tire, today Kumho Tire. Facing a shortage of raw material, Kumho Synthetic Rubber (today Kumho Petrochemical) was established in 1971 . The group expanded considerably as the Korean economy boomed, adding subsidiary companies in construction, shipping and logistics, aviation, leisure, culture and entertainment, financial services, and information technology.
Surviving the 1997 Asian financial crisis in a position of strength, it acquired several companies from cash-strapped competitors in the 2000s, including Daewoo Engineering & Construction and Korea Express. These acquisitions were heavily indebted, leading to cash flow issues as the financial crisis of 2007–08 began to impact the economy. The group was forced to sell off assets and begin a debt workout program in late 2009 after an attempt to sell Daewoo E&C failed on the open market.
