In the early part of the 1960s, South Korea was going through a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. Following WWII, 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 following the US military withdrawal. In 1953, the country was at peace finally, and South Korea started an intensive drive towards economic growth, transforming quickly from an agrarian economy to an industrial, centrally planned 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 in this period of economic emergence. Daewoo, which translates as "Great Universe," was established in 1967.
The initial share capital of the company was just $18,000, but Kim along with his partners believed that the business will become a great success. This proved true, and Daewoo went on to become among the nation's biggest chaebols, or conglomerates. The business had operations within a wide array of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established in different countries. Ultimately, there were over 100 branches all over the globe. The corporation at its peak sold thousands of various products in more than 130 countries. By the late 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during 1999 and other corporations purchased most of Daewoo's holdings.