South Korea was dealing with a serious trade deficit during the early part of the 1960s. The nation's domestic market was not strong enough to support domestic businesses. Following World War II, when the Allies divided Korea, 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. In 1953, the country was at peace finally, and South Korea began an intensive drive towards economic development, rapidly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, that translates as "Great Universe," was established in the year 1967.
Even if the company's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became amongst the biggest chaebols, or conglomerates of the country. The corporation had operations within a wide array of industries, like for example shipbuilding, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established in various countries. Ultimately, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the corporation had become significantly overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled during 1999 and other businesses purchased most of the company's holdings.