During the early 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the country was not really that strong to support domestic businesses. After World War II, 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. During the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, transforming rapidly 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 during this period of economic emergence. Daewoo, that translates as "Great Universe," was founded during the year 1967.
Even if the company's initial share capital was just $18,000, Kim as well as his partners believed that the company would be successful. This proved true, because Daewoo became amongst the biggest chaebols, or companies of the country. The corporation had operations within a huge array of businesses, like for example motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established in various nations. Ultimately, there were over 100 branches all over the world. The business at its peak sold thousands of different products in more than 130 nations. 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 South Korean government ordered the corporation dismantled during 1999 and other corporations bought most of the company's holdings.