In the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not truly that strong to support domestic industries. Following World War II, 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. In the year 1953, the country was finally at peace, 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 during this period of economic emergence. Daewoo, that means "Great Universe," was founded in 1967.
The initial share capital of the corporation was only $18,000, but Kim along with his partners believed that the company will become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or corporations of the country. The corporation had operations in a huge array of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established in various countries. Eventually, there were more than 100 branches all around the world. The corporation at its peak sold thousands of different items in more than 130 nations. By the latter part of the 1990s the corporation had become considerably overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled in the year 1999 and other corporations purchased most of Daewoo's holdings.