During the early part of the 1960s, South Korea was experiencing a serious trade deficit. The country's domestic market was not strong enough to support domestic industries. Following World War II, 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 following the withdrawal of the U.S. military. 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, that translates as "Great Universe," was established in 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the business would become a great success. This proved true, because Daewoo became amongst the largest chaebols, or corporations of the country. The company had operations within a wide array of industries, including motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established in different nations. Ultimately, there were more than 100 branches all over the world. The business at its peak sold thousands of different products in over 130 countries. By the latter part of the 1990s the corporation had become significantly overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.