Under Major Friedrich Butala's leadership, the club aimed to promote football locally, notably hosting a friendly match against Bayern Munich's reserve team, which ended in a 3–1 defeat for Gmunden.

[1] During the 1930s, SV Gmunden gained prominence, reaching the Upper Austrian Cup final in 1936 as a second-tier team, although they lost to SK Admira Linz 3–2.

After World War II, the club re-formed as Sportverein Gmunden and attracted over 5,000 fans to a 1946 match against Rapid Wien, securing a spot in the Austrian Landesliga by 1948.

The club won the Upper Austrian Cup in 1981 and the third-tier Landesliga Oberösterreich title in 1983, establishing itself competitively.

[1] Throughout the 2010s, SV Gmunden faced financial instability and fluctuating league performance, resulting in relegation battles.