During the early part of the 1960s, South Korea was experiencing a serious trade deficit. 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. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. During 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, 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, which means "Great Universe," was founded during 1967.
Even if the company's initial share capital was just $18,000, Kim and his partners believed that the company will be successful. This proved true, because Daewoo became amongst the largest chaebols, or conglomerates of the country. The company had operations within a wide array of businesses, like for instance motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were over 100 branches throughout the world. The business at its peak sold thousands of various items in more than 130 countries. By the late 1990s the company had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other businesses bought most of the company's holdings.