In the early part of the 1960s, South Korea was going through a serious trade deficit. The domestic market of the nation was not truly that strong to support domestic businesses. Following WWII, when the Allies divided Korea, 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 withdrawal of the U.S. military. During 1953, the nation was finally at peace, and South Korea began 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, which means "Great Universe," was founded during 1967.
Even if the company's initial share capital was only $18,000, Kim as well as his partners believed that the business will be successful. This proved true, because Daewoo became amongst the largest chaebols, or corporations of the nation. The corporation had operations in a wide array of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were over 100 branches all over the world. The company at its peak sold thousands of different items in over 130 nations. By the latter part of the 1990s the company had become significantly overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the corporation dismantled during the year 1999 and other businesses bought most of the company's holdings.