South Korea was experiencing a serious trade deficit during the early 1960s. The domestic market of the nation was not really 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. With its stronger military, North Korea, wasted little time before invading the South following the withdrawal of the U.S. military. During 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned 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 in this period of economic emergence. Daewoo, which means "Great Universe," was founded during the year 1967.
Even though the corporation's initial share capital was just $18,000, Kim as well as his partners believed that the company would be successful. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or businesses. The corporation had operations in a wide range of industries, like for example motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted heavily and a network of offices was established in different nations. Ultimately, there were over 100 branches throughout the world. The company at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the company had become considerably overextended. The corporation was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled in the year 1999 and other businesses purchased most of the company's holdings.