In the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the country was not truly that strong to support domestic industries. Following World War II, 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 after the withdrawal of the U.S. military. During 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, transforming quickly from an agrarian economy to a centrally planned, industrial 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, which means "Great Universe," was founded during the year 1967.
Even if the company's initial share capital was only $18,000, Kim as well as his partners believed that the business will be successful. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or conglomerates. The company had operations in a wide array of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were over 100 branches all around the globe. The corporation at its peak sold thousands of different products in over 130 nations. By the late 1990s the company had become considerably overextended. The business was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled during 1999 and other corporations purchased most of Daewoo's holdings.