In the early part of the 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. Following WWII, 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 following the US military withdrawal. During 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, quickly transforming 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 established during the year 1967.
The initial share capital of the company was only $18,000, but Kim together with his partners believed that the business would become a great success. This proved true, and Daewoo went on to become amongst the nation's biggest chaebols, or conglomerates. The corporation had operations within a wide range of industries, like for instance motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were heavily promoted and a network of offices was established in various countries. Eventually, there were over 100 branches all around the world. The corporation at its peak sold thousands of various products in more than 130 nations. By the late 1990s the corporation had become significantly overextended. The business 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 purchased most of Daewoo's holdings.