South Korea was going through a serious trade deficit in the early part of the 1960s. The domestic market of the country was not truly that strong to support domestic businesses. Following WWII, when the Allies divided Korea, all the natural resources were in the territory north of the 38th parallel. North Korea, with its stronger military, wasted little time before invading the South following the withdrawal of the U.S. military. In the year 1953, the country was at peace finally, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that translates as "Great Universe," was founded in 1967.
Even if the corporation's initial share capital was only $18,000, Kim and his partners believed that the company will be successful. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or companies. The corporation had operations within a huge array of industries, like shipbuilding, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established in different nations. Ultimately, there were over 100 branches all over the globe. The corporation at its peak sold thousands of various products in over 130 countries. By the late 1990s the business had become significantly overextended. The company was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.