During the early 1960s, South Korea was going through 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 after the US military withdrawal. In 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, rapidly transforming from an agrarian economy to an industrial, centrally planned 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, that means "Great Universe," was established during 1967.
Even though the company's initial share capital was just $18,000, Kim as well as his partners believed that the company will be successful. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or corporations. The corporation had operations within a huge array of industries, including motor vehicles, building ships, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were over 100 branches all over the world. The company at its peak sold thousands of various items in more than 130 countries. By the late 1990s the company had become considerably overextended. The business was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the corporation dismantled during 1999 and other corporations bought most of the company's holdings.