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 industries. Following 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 following the US military withdrawal. In 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong during this period of economic emergence. Daewoo, which translates as "Great Universe," was established in 1967.
Even though the corporation's initial share capital was only $18,000, Kim as well as his partners believed that the business will be successful. This proved true, because Daewoo became amongst the biggest chaebols, or companies of the nation. The company had operations in a wide range of businesses, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were more than 100 branches all around the globe. The corporation at its peak sold thousands of different items in over 130 countries. By the latter part of the 1990s the corporation had become significantly overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in the year 1999 and other businesses purchased most of the company's holdings.