South Korea was experiencing a serious trade deficit during the early part of the 1960s. The domestic market of the country was not really that strong to support domestic businesses. After 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 withdrawal of the U.S. military. During 1953, the country was finally at peace, and South Korea started an intensive drive towards economic development, rapidly transforming from an agrarian economy to an industrial, centrally planned 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 means "Great Universe," was established during the year 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the company will become a great success. This proved true, because Daewoo became among the largest chaebols, or corporations of the country. The company had operations in a wide range of industries, like for example motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were over 100 branches throughout the globe. The business at its peak sold thousands of various items in more than 130 countries. By the latter part of the 1990s the company had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in the year 1999 and other corporations purchased most of the company's holdings.