South Korea was experiencing 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 Korea was divided by the Allies, 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 the year 1953, the nation was at peace finally, and South Korea began 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 vital 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 established in the year 1967.
The initial share capital of the company was only $18,000, but Kim and his partners believed that the company would become a great success. This proved true, because Daewoo became amongst the largest chaebols, or conglomerates of the country. The company had operations in a wide range of industries, including building ships, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were over 100 branches all over the globe. The company at its peak sold thousands of various items in more than 130 countries. By the latter part of the 1990s the business had become significantly 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 corporations bought most of the company's holdings.