During the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the nation was not truly 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. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. In the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience hostile invasions and lack of vital 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 established during 1967.
Even though the corporation's initial share capital was just $18,000, Kim and his partners believed that the company will be successful. This proved true, because Daewoo became among the biggest chaebols, or conglomerates of the country. The company had operations within a huge range of businesses, like motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were heavily promoted and a network of offices was established abroad. Ultimately, there were over 100 branches throughout the globe. The company at its peak sold thousands of various items in more than 130 nations. By the late 1990s the company had become considerably overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in the year 1999 and other businesses purchased most of Daewoo's holdings.