South Korea was going through a serious trade deficit in the early part of the 1960s. The country's domestic market was not strong enough 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. North Korea, with its stronger military, wasted little time before invading the South after the US military withdrawal. During 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, quickly 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 translates as "Great Universe," was founded during 1967.
The initial share capital of the company was only $18,000, but Kim along with his partners believed that the business will become a great success. This proved true, and Daewoo went on to become among the nation's biggest chaebols, or businesses. The company had operations within a wide array of businesses, like motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were more than 100 branches all over the world. The corporation at its peak sold thousands of various products in over 130 nations. By the late 1990s the company had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other corporations purchased most of Daewoo's holdings.