South Korea was dealing with a serious trade deficit in the early 1960s. The country's domestic market was not strong enough to support domestic industries. Following WWII, when Korea was divided by the Allies, 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 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, transforming quickly 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, which translates as "Great Universe," was established during the year 1967.
The initial share capital of the corporation was just $18,000, but Kim along with his partners believed that the business would become a great success. This proved true, because Daewoo became among the biggest chaebols, or corporations of the nation. The business had operations in a wide array of businesses, including motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established in various countries. Eventually, there were more than 100 branches throughout the world. The corporation at its peak sold thousands of various items in over 130 nations. By the latter part of the 1990s the company had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in the year 1999 and other businesses purchased most of Daewoo's holdings.