In the early part of the 1960s, South Korea was experiencing a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. After WWII, 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 withdrawal of the U.S. military. In 1953, the nation was at peace finally, 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 go through hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that translates as "Great Universe," was founded during 1967.
Even though the corporation's initial share capital was only $18,000, Kim and his partners believed that the business would be successful. This proved true, and Daewoo went on to become one of the country's biggest chaebols, or corporations. The business had operations within a huge array of industries, like building ships, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established in different countries. Ultimately, there were more than 100 branches all over the world. The company at its peak sold thousands of different items in more than 130 countries. By the late 1990s the business had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.