South Korea was dealing with a serious trade deficit in the early part of the 1960s. The country's domestic market was not strong enough 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. With its stronger military, North Korea, wasted little time before invading the South after the US military withdrawal. In the year 1953, the country was finally at peace, and South Korea began an intensive drive towards economic development, transforming quickly 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 as well as his partners believed that the business will be successful. This proved true, because Daewoo became among the biggest chaebols, or companies of the nation. The business had operations in a wide array of industries, like shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Ultimately, there were more than 100 branches all over the world. The company at its peak sold thousands of different items in over 130 nations. By the latter part of the 1990s the company had become considerably overextended. The corporation was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other businesses bought most of the company's holdings.