South Korea was dealing with a serious trade deficit during the early 1960s. The domestic market of the nation was not truly that strong to support domestic industries. After World War II, 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 after the US military withdrawal. During the year 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic growth, quickly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong in this period of economic emergence. Daewoo, that means "Great Universe," was established in the year 1967.
Even though the corporation's initial share capital was just $18,000, Kim as well as his partners believed that the business will be successful. This proved true, and Daewoo went on to become one of the nation's largest chaebols, or businesses. The business had operations within a wide array of industries, like building ships, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were more than 100 branches throughout the globe. The company at its peak sold thousands of different items in over 130 countries. By the late 1990s the business had become significantly overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the corporation dismantled in 1999 and other businesses bought most of Daewoo's holdings.