South Korea was experiencing a serious trade deficit during the early 1960s. The domestic market of the country was not really that strong to support domestic businesses. Following 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 following the withdrawal of the U.S. military. During the year 1953, the country was at peace finally, and South Korea started an intensive drive towards economic growth, rapidly transforming 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in 1967.
The initial share capital of the company was just $18,000, but Kim along with his partners believed that the business will become a great success. This proved true, and Daewoo went on to become one of the country's biggest chaebols, or corporations. The business had operations in a wide array of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were more than 100 branches all around the world. The company at its peak sold thousands of different items in more than 130 countries. By the late 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other businesses purchased most of Daewoo's holdings.