During the early part of the 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic industries. Following WWII, 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 withdrawal of the U.S. military. In 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, quickly 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 during this period of economic emergence. Daewoo, that means "Great Universe," was founded during the year 1967.
Even though the company's initial share capital was only $18,000, Kim and his partners believed that the business would be successful. This proved true, because Daewoo became among the largest chaebols, or corporations of the nation. The corporation had operations within a wide range of businesses, like building ships, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were over 100 branches all over the world. The corporation at its peak sold thousands of various products in more than 130 countries. By the latter part of the 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the corporation dismantled in 1999 and other corporations bought most of the company's holdings.