During the early 1960s, South Korea was experiencing a serious trade deficit. The nation's domestic market was not strong enough to support domestic businesses. After 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 following the US military withdrawal. In 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to a centrally planned, industrial 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, which translates as "Great Universe," was established in the year 1967.
Even if the corporation's initial share capital was just $18,000, Kim as well as his partners believed that the business would be successful. This proved true, and Daewoo went on to become among the nation's largest chaebols, or businesses. The company had operations in a wide array of industries, like for instance shipbuilding, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were over 100 branches all around the world. The business at its peak sold thousands of various items in over 130 nations. By the late 1990s the business had become considerably overextended. The corporation was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled during the year 1999 and other corporations purchased most of the company's holdings.