During the early part of the 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic industries. Following WWII, 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. In the year 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic growth, transforming quickly 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, that means "Great Universe," was founded in 1967.
Even if the company's initial share capital was only $18,000, Kim and his partners believed that the business will be successful. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or corporations. The business had operations within a huge array of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established in various nations. Eventually, there were over 100 branches throughout the globe. The corporation at its peak sold thousands of different products in over 130 nations. By the latter part of the 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in 1999 and other businesses purchased most of Daewoo's holdings.