In the early 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the country was not truly that strong to support domestic businesses. Following WWII, 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 US military withdrawal. During 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic growth, transforming quickly from an agrarian economy to an industrial, centrally planned 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, that means "Great Universe," was founded in the year 1967.
Even though the corporation's initial share capital was only $18,000, Kim and his partners believed that the company will be successful. This proved true, because Daewoo became among the biggest chaebols, or corporations of the country. The business had operations in a huge range of businesses, like for instance building ships, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were over 100 branches all over the world. The corporation at its peak sold thousands of different items in more than 130 nations. By the late 1990s the corporation had become considerably overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the corporation dismantled in 1999 and other corporations purchased most of the company's holdings.