During the early 1960s, South Korea was dealing with a serious trade deficit. The nation'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 after the withdrawal of the U.S. military. During 1953, the nation was at peace finally, 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 essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, which means "Great Universe," was founded during 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the company would become a great success. This proved true, and Daewoo went on to become amongst the nation's largest chaebols, or conglomerates. The business had operations within a wide range of industries, like for example building ships, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Ultimately, there were more than 100 branches all over the world. The corporation at its peak sold thousands of different products in more than 130 countries. By the latter part of the 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other businesses purchased most of Daewoo's holdings.