South Korea was experiencing a serious trade deficit in the early 1960s. The nation's domestic market was not strong enough to support domestic businesses. Following World War II, 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. In 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic development, rapidly 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 in 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 together with his partners believed that the company will become a great success. This proved true, and Daewoo went on to become amongst the nation's biggest chaebols, or corporations. The company had operations in a wide range of industries, like motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were heavily promoted and a network of offices was established in different countries. Ultimately, there were over 100 branches all around the globe. The business at its peak sold thousands of various items in more than 130 nations. By the late 1990s the business had become significantly overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during 1999 and other corporations purchased most of the company's holdings.