In the early 1960s, South Korea was going through a serious trade deficit. The domestic market of the country was not really that strong to support domestic businesses. Following WWII, when the Allies divided Korea, 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 following the withdrawal of the U.S. military. In 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming quickly 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, that translates as "Great Universe," was established during the year 1967.
The initial share capital of the company was just $18,000, but Kim together with his partners believed that the company will become a great success. This proved true, and Daewoo went on to become among the country's biggest chaebols, or businesses. The company had operations in a wide array of businesses, like for instance motor vehicles, shipbuilding, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established in various countries. Eventually, there were over 100 branches throughout the world. The company at its peak sold thousands of various items in over 130 nations. By the latter part of the 1990s the business had become significantly overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.