South Korea was going through a serious trade deficit in the early part of the 1960s. The domestic market of the nation was not really that strong to support domestic businesses. Following World War II, when Korea was divided by the Allies, 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 withdrawal of the U.S. military. During the year 1953, the country was finally at peace, and South Korea started an intensive drive towards economic development, rapidly transforming from an agrarian economy to an industrial, centrally planned 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 during this period of economic emergence. Daewoo, which means "Great Universe," was established during 1967.
The initial share capital of the corporation was only $18,000, but Kim along with his partners believed that the company would become a great success. This proved true, because Daewoo became among the largest chaebols, or businesses of the nation. The company had operations within a huge range of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. 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 over 130 countries. By the late 1990s the business had become considerably overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in 1999 and other corporations bought most of Daewoo's holdings.