South Korea was experiencing a serious trade deficit in the early part of the 1960s. The domestic market of the nation was not really that strong to support domestic industries. Following World War II, when Korea was divided by the Allies, 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 nation was finally at peace, and South Korea began an intensive drive towards economic development, rapidly transforming from an agrarian economy to a centrally planned, industrial 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 during this period of economic emergence. Daewoo, that translates as "Great Universe," was founded in 1967.
The initial share capital of the corporation was only $18,000, but Kim and his partners believed that the company would become a great success. This proved true, and Daewoo went on to become among the nation's largest chaebols, or corporations. The corporation had operations within a huge range of industries, including building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the globe. 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 considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the corporation dismantled in 1999 and other businesses purchased most of Daewoo's holdings.