South Korea was experiencing a serious trade deficit during the early 1960s. The nation's domestic market was not strong enough to support domestic industries. Following World War II, 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 withdrawal of the U.S. military. In the year 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience 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 established during the year 1967.
The initial share capital of the corporation was just $18,000, but Kim together with his partners believed that the company would become a great success. This proved true, because Daewoo became among the largest chaebols, or conglomerates of the country. The company had operations within a wide range of industries, like for example motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were over 100 branches all over the globe. The business at its peak sold thousands of different items in more than 130 nations. By the latter part of the 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in the year 1999 and other corporations bought most of the company's holdings.