South Korea was dealing with a serious trade deficit in the early part of the 1960s. The domestic market of the country was not really that strong to support domestic businesses. After World War II, 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 nation was finally at peace, and South Korea began an intensive drive towards economic growth, transforming quickly from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that translates as "Great Universe," was established in the year 1967.
Even though the company's initial share capital was only $18,000, Kim and his partners believed that the company will be successful. This proved true, because Daewoo became amongst the biggest chaebols, or conglomerates of the country. The corporation had operations in a huge array of businesses, including motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were greatly promoted and a network of offices was established in various countries. Ultimately, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of different items in more than 130 nations. By the latter part of the 1990s the corporation had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in the year 1999 and other businesses purchased most of the company's holdings.