During the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not truly that strong to support domestic industries. After 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 US military withdrawal. During the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, 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 in 1967.
The initial share capital of the corporation was just $18,000, but Kim together with his partners believed that the business will become a great success. This proved true, because Daewoo became amongst the largest chaebols, or corporations of the country. The corporation had operations within a wide array of businesses, like motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were heavily promoted and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the globe. The company at its peak sold thousands of different items in more than 130 nations. By the late 1990s the company had become significantly overextended. The corporation was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in the year 1999 and other corporations purchased most of the company's holdings.