South Korea was experiencing a serious trade deficit during the early 1960s. The country's domestic market was not strong enough to support domestic businesses. Following WWII, when the Allies divided Korea, 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. During the year 1953, the country was at peace finally, and South Korea began an intensive drive towards economic development, transforming quickly 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 founded by Kim Woo Choong during this period of economic emergence. Daewoo, which means "Great Universe," was founded during the year 1967.
Even though the corporation's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, and Daewoo went on to become amongst the nation's largest chaebols, or corporations. The corporation had operations in a wide range of businesses, like for example motor vehicles, building ships, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were heavily promoted and a network of offices was established in different nations. Eventually, there were more than 100 branches all over the world. The company at its peak sold thousands of various items in over 130 countries. By the late 1990s the company had become considerably overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.