In the early 1960s, South Korea was going through a serious trade deficit. The country's domestic market was not strong enough 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. During 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of essential 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.
The initial share capital of the corporation was only $18,000, but Kim and his partners believed that the business would become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or businesses of the nation. The corporation had operations in a wide array of industries, like for instance shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted heavily and a network of offices was established in various countries. Ultimately, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of different items in over 130 nations. By the latter part of the 1990s the company had become considerably overextended. The corporation was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in 1999 and other corporations purchased most of the company's holdings.