In the early part of the 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. After World War II, when Korea was divided by the Allies, 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 US military withdrawal. During the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of vital 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 established in 1967.
The initial share capital of the company was only $18,000, but Kim along with his partners believed that the company will become a great success. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or businesses. The corporation had operations in a wide array of industries, like shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Eventually, there were over 100 branches all around the globe. The company at its peak sold thousands of different products in over 130 countries. By the late 1990s the corporation had become significantly overextended. The corporation was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other businesses bought most of the company's holdings.