South Korea was going through a serious trade deficit during the early part of the 1960s. The domestic market of the country was not really that strong to support domestic industries. 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 following the US military withdrawal. In 1953, the country was at peace finally, and South Korea began an intensive drive towards economic development, transforming quickly from an agrarian economy to an industrial, centrally planned 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was established during the year 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 in a wide range of businesses, like for example motor vehicles, building ships, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were over 100 branches all over the world. The business at its peak sold thousands of various products in over 130 countries. By the late 1990s the business had become significantly overextended. The business was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during the year 1999 and other businesses bought most of the company's holdings.