South Korea was dealing with a serious trade deficit in the early 1960s. The nation's domestic market was not strong enough 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 after the US military withdrawal. During 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, rapidly transforming 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 translates as "Great Universe," was established during 1967.
Even if the corporation's initial share capital was only $18,000, Kim as well as his partners believed that the company will be successful. This proved true, because Daewoo became amongst the largest chaebols, or businesses of the nation. The corporation had operations in a huge range of businesses, like for instance shipbuilding, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were over 100 branches all around the world. The company at its peak sold thousands of different items in more than 130 nations. By the latter part of the 1990s the business had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled during 1999 and other businesses purchased most of the company's holdings.