During the early 1960s, South Korea was experiencing a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. After World War II, 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 US military withdrawal. In 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic growth, quickly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded during the year 1967.
Even if the company's initial share capital was only $18,000, Kim as well as his partners believed that the business would be successful. This proved true, because Daewoo became among the biggest chaebols, or corporations of the country. The corporation had operations in a wide range of industries, including motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were over 100 branches throughout the world. The corporation at its peak sold thousands of various products in more than 130 nations. By the latter part of the 1990s the company had become considerably overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled during 1999 and other corporations purchased most of Daewoo's holdings.