Daewoo moved into the construction industry, helping to make the new village movement, that was a part of the rural development program in Korea. The company was also able to take advantage of the emergent markets within the Middle East and within Africa. Daewoo was given its GTC designation during this time. The South Korean government offered major investment support to the corporation in the form of subsidized loans. South Korea's strict import controls angered competing nations, but the government knew that, without help, the chaebols would never endure the global recession caused by the 1970's oil crisis. Protectionist policies were needed to make certain that the economy continued to grow.
Even though the government felt that both Samsung and Hyundai had the greater expertise in heavy engineering, Daewoo was forced into shipbuilding by the government. Okpo, the largest dockyard in the globe was not a responsibility which Kim was wanting. He stated lots of times that the Korean government was stifling his entrepreneurial instinct by forcing him to carry out actions based on responsibility instead of revenue. In spite of his reluctance, Kim was able to turn Daewoo Shipbuilding and Heavy Machinery into a very profitable corporation making oil rigs and ships that are competitively priced on a tight production schedule. This happened during the 1980s when the economy in South Korea was experiencing a liberalization stage.
In this period, the government relaxed its protectionist measures and encouraged the existence of small- and medium-sized companies. Daewoo was forced to rid two of its important textile corporations, and its shipbuilding industry faced stiffer competition from overseas. The goal of the government was to shift to a free market economy by encouraging a more effective allocation of resources. Such a policy was meant to make the chaebols more aggressive in their worldwide dealings. However, the new economic conditions caused some chaebols to fail. The Kukje Group, among the competitors of Daewoo, went into liquidation during 1985. The shift of government favour to small private businesses was intended to spread the wealth which had before been concentrated in Pusan and Seoul, Korea's industrial centers.