South Korea was dealing with a serious trade deficit in the early part of the 1960s. The country'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 began an intensive drive towards economic development, rapidly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong in this period of economic emergence. Daewoo, that means "Great Universe," was established in 1967.
Even though the company's initial share capital was just $18,000, Kim as well as his partners believed that the company will be successful. This proved true, because Daewoo became amongst the largest chaebols, or companies of the country. The business had operations within a huge array of industries, including motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were over 100 branches all around the world. The corporation at its peak sold thousands of various products in more than 130 countries. By the latter part of the 1990s the business had become significantly overextended. The company was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during 1999 and other corporations purchased most of the company's holdings.