In the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the country was not really that strong to support domestic businesses. After WWII, 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. In the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming quickly from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience 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.
Even though the company's initial share capital was only $18,000, Kim and his partners believed that the company would be successful. This proved true, because Daewoo became among the largest chaebols, or conglomerates of the country. The business had operations in a wide range of businesses, like for instance motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were heavily promoted and a network of offices was established in different countries. Eventually, there were more than 100 branches all around the globe. The corporation at its peak sold thousands of various items in over 130 countries. By the late 1990s the company had become significantly overextended. The corporation was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in 1999 and other businesses purchased most of the company's holdings.