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 businesses. After WWII, 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. During the year 1953, the country was finally at peace, 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in the year 1967.
Even though the company's initial share capital was only $18,000, Kim as well as his partners believed that the business would be successful. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or companies. The corporation had operations within a wide array of businesses, like building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Ultimately, there were more than 100 branches all over the globe. The company at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the business had become considerably overextended. Daewoo was seriously 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 bought most of the company's holdings.