For the 2006 K League season, the club placed seventh overall in the league and was 13th in Samsung Hauzen Cup. It reached the quarterfinals of the 2006 edition of the FA Cup but lost (again) to the Chunnam Dragons. Following completion of the 2006 season, Park Jong-hwan stepped down as manager after four years with the club. On 1 December 2006, Byun Byung-joo was appointed as the new manager. A former South Korean international, Byun had no previous K League management experience prior to his appointment as Daegu FC's manager. The club's performance slipped in comparison to its previous two seasons, and it placed 12th. The club failed to get out of the group stage in the 2007 Samsung Hauzen Cup and achieved a similar level of performance in the FA Cup, where Daegu lost to Incheon United in the round of 16.