In the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the country was not really that strong to support domestic industries. After 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 after the withdrawal of the U.S. military. During 1953, the country was finally at peace, and South Korea began an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience 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, that translates as "Great Universe," was established during 1967.
The initial share capital of the company was just $18,000, but Kim and his partners believed that the business would become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or corporations of the country. The corporation had operations within a huge array of industries, like for example motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established in different nations. Ultimately, there were more than 100 branches all around the globe. The business at its peak sold thousands of various items in over 130 countries. By the late 1990s the company had become significantly overextended. The corporation was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during the year 1999 and other corporations purchased most of the company's holdings.