South Korea was going through a serious trade deficit during the early part of the 1960s. The domestic market of the nation was not really that strong 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 following the withdrawal of the U.S. military. In 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic development, transforming quickly from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience 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 translates as "Great Universe," was founded during 1967.
The initial share capital of the corporation was just $18,000, but Kim along with his partners believed that the company will become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or businesses of the nation. The business had operations in a huge range of businesses, including shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Ultimately, there were more than 100 branches all around the world. The business at its peak sold thousands of different products in over 130 nations. By the late 1990s the corporation 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 the year 1999 and other businesses bought most of the company's holdings.