In the early part of the 1960s, South Korea was going through a serious trade deficit. The domestic market of the country was not truly that strong to support domestic industries. Following 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 after the US military withdrawal. During the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, rapidly 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 translates as "Great Universe," was founded in the year 1967.
The initial share capital of the corporation was only $18,000, but Kim together with his partners believed that the business would become a great success. This proved true, and Daewoo went on to become among the nation's largest chaebols, or corporations. The corporation had operations within a wide array of businesses, like for instance building ships, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were heavily promoted and a network of offices was established in various countries. Ultimately, there were over 100 branches throughout the world. The company at its peak sold thousands of various items in more than 130 nations. By the late 1990s the company had become significantly overextended. The business was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled during the year 1999 and other corporations purchased most of the company's holdings.