During the early 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not truly that strong to support domestic industries. Following 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 US military withdrawal. During the year 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, rapidly transforming 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 in this period of economic emergence. Daewoo, that means "Great Universe," was established during 1967.
Even though the company's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became among the biggest chaebols, or corporations of the country. The company had operations within a wide array of industries, like for instance motor vehicles, building ships, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Ultimately, there were over 100 branches all around the world. The business at its peak sold thousands of different items in over 130 nations. By the latter part of the 1990s the company had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled in 1999 and other corporations purchased most of the company's holdings.