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