South Korea was going through a serious trade deficit during the early part of the 1960s. The nation'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 withdrawal of the U.S. military. In the year 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, quickly transforming 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, that translates as "Great Universe," was founded in the year 1967.
Even though the company's initial share capital was only $18,000, Kim and his partners believed that the business would be successful. This proved true, because Daewoo became among the largest chaebols, or corporations of the nation. The company had operations in a huge array of industries, like for example shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were over 100 branches throughout the globe. The corporation at its peak sold thousands of various products in more than 130 countries. By the latter part of the 1990s the company had become considerably overextended. The business was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in the year 1999 and other businesses bought most of the company's holdings.