Korunda Gate was once the center of Kundarakhold, the lands belonging to Clan Kundarak before they were an established dragonmarked house. The gate was used to prevent outlawed clans from returning to the dwarf lands. Karrn the Conqueror subjugated the clans that Kundarak worked so hard to keep out before seizing control of the Mror Holds. Shortly after and with Kundarak's consent, Korunda Gate was reopened.
Before receiving its dragonmarked house status in 106 YK, Kundarak also used Korunda Gate as a mine though, on account of their dragonmarked status, they ceased all mining operations run by or involving Kundarak members. The majority of the mines were transformed into vaults.