In the early 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. Following 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 after the US military withdrawal. In 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, transforming quickly from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, which means "Great Universe," was established in 1967.
Even if the company's initial share capital was just $18,000, Kim as well as his partners believed that the company will be successful. This proved true, because Daewoo became among the largest chaebols, or companies of the country. The corporation had operations in a huge array of businesses, like shipbuilding, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were promoted heavily and a network of offices was established in various countries. Ultimately, there were over 100 branches throughout the world. The corporation at its peak sold thousands of different items in over 130 nations. By the late 1990s the corporation had become significantly overextended. The company was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other businesses purchased most of Daewoo's holdings.