In the early part of the 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic industries. After WWII, 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 following the US military withdrawal. During 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, rapidly transforming 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 in this period of economic emergence. Daewoo, which translates as "Great Universe," was established during the year 1967.
The initial share capital of the corporation was only $18,000, but Kim along with his partners believed that the business will become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or corporations of the nation. The corporation had operations in a huge array of industries, like for example motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of different products in more than 130 nations. By the latter part of the 1990s the company had become considerably overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled during 1999 and other businesses bought most of the company's holdings.