South Korea was dealing with a serious trade deficit in the early 1960s. The country's domestic market was not strong enough 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. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. During 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic development, transforming rapidly from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that means "Great Universe," was founded in 1967.
Even though the corporation'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 biggest chaebols, or businesses of the country. The company had operations in a wide range of businesses, like motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were heavily promoted and a network of offices was established abroad. Ultimately, there were more than 100 branches all over the globe. The company at its peak sold thousands of different items in over 130 nations. By the late 1990s the business had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other businesses purchased most of the company's holdings.