South Korea was going through a serious trade deficit in the early part of the 1960s. The domestic market of the nation was not really that strong 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. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. During 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, transforming rapidly 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, which translates as "Great Universe," was established in the year 1967.
The initial share capital of the company was only $18,000, but Kim together with his partners believed that the company would become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or companies of the country. The business had operations within a wide range of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were heavily promoted and a network of offices was established in different nations. Eventually, there were over 100 branches all around the globe. The corporation at its peak sold thousands of different items in over 130 nations. By the latter part of the 1990s the business had become considerably overextended. The corporation was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in 1999 and other businesses purchased most of the company's holdings.