The Post Office in the area opened on 1 September 1884, and moved to the township on the railway survey line on 1 November 1889, the existing office being renamed Glentress. The
railway arrived in 1891, and the now heritage listed railway station was built in 1908. The town enjoyed a wave of migration of European migrants, who added to the town's growth and culture.
Antonio Radovick "Father of Korumburra" was the most successful Croatian pioneer in Victoria, who contributed to the start and growth of the town in the 1890s and 1900s. He built the town's first hotel in 1889, and there is a street bearing his name nearby. The township has a common incorrect spelling of its name being Kurrumburra, with 45 records shown in the World War Two Nominal Roll.
Coal-mining Korumburra owed its early prosperity to
coal mining; 2,000,000 tonnes of coal were produced by the Korumburra coalfields from 1893 to 1962. A coal-miners' strike affected the town in 1937, during the years of the
Great Depression, demanding that their employers accept the recent determination of the wages board that raised the wage by 4
shillings and 5 shillings. The miners at the Sunbeam Colliery in Korumburra stayed below ground, and management refused to allow other employees to enter the premises to relieve the striking miners so that they could access food and supplies. This was the first "stay-in" coal strike in Victoria, which came about after management posted notices terminating the services of all employees on and after 9 September, the date on which a new
Wages Board determination came into operation-had been posted at the
pit head. The strike spread to other states after the federal government refused to intervene, and by 13 September, every mine in Australia was closed, apart from in
Western Australia. The dispute was eventually settled in November 1937. ==Today==