During the early part of the 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the nation was not truly that strong to support domestic businesses. After World War II, 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 after the withdrawal of the U.S. military. In 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of vital 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 established during the year 1967.
Even though the company's initial share capital was just $18,000, Kim as well as his partners believed that the company will be successful. This proved true, because Daewoo became among the biggest chaebols, or businesses of the country. The business had operations within a wide array of businesses, including building ships, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were more than 100 branches all over the globe. The company at its peak sold thousands of various items in over 130 nations. By the late 1990s the corporation had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in 1999 and other businesses purchased most of Daewoo's holdings.