South Korea was experiencing a serious trade deficit in the early 1960s. The domestic market of the country was not truly that strong to support domestic industries. After WWII, 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 US military withdrawal. In 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 in this period of economic emergence. Daewoo, that means "Great Universe," was established in the year 1967.
Even if the company's initial share capital was just $18,000, Kim as well as his partners believed that the company would be successful. This proved true, because Daewoo became among the largest chaebols, or companies of the country. The corporation had operations within a wide array of industries, including building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of different products in more than 130 nations. By the latter part of the 1990s the company had become significantly overextended. The company was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in the year 1999 and other businesses purchased most of Daewoo's holdings.