During the early 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough 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. North Korea, with its stronger military, wasted little time before invading the South after the US military withdrawal. In the year 1953, the country was at peace finally, and South Korea started 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 essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, which means "Great Universe," was founded in 1967.
The initial share capital of the company was only $18,000, but Kim along with his partners believed that the business would become a great success. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or corporations. The business had operations in a wide range of businesses, like motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established in various countries. Ultimately, there were over 100 branches all over the globe. The corporation at its peak sold thousands of different items in over 130 countries. By the latter part of the 1990s the company had become significantly overextended. The company was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled during 1999 and other businesses purchased most of the company's holdings.