South Korea was dealing with a serious trade deficit during the early 1960s. The nation's domestic market was not strong enough to support domestic businesses. After WWII, when Korea was divided by the Allies, 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 country was at peace finally, and South Korea started an intensive drive towards economic development, 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 means "Great Universe," was founded in 1967.
The initial share capital of the corporation was only $18,000, but Kim together with his partners believed that the business will become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or businesses of the nation. The company had operations in a wide range of businesses, including building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established in various nations. Eventually, there were over 100 branches all around the world. The corporation at its peak sold thousands of different products in more than 130 nations. By the latter part of the 1990s the business had become significantly overextended. The business was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled during the year 1999 and other corporations bought most of the company's holdings.