South Korea was experiencing a serious trade deficit during the early 1960s. The domestic market of the nation was not really that strong to support domestic industries. Following WWII, when the Allies divided Korea, 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 growth, quickly transforming from an agrarian economy to a centrally planned, industrial 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 established in 1967.
Even if the corporation's initial share capital was just $18,000, Kim as well as his partners believed that the business would be successful. This proved true, because Daewoo became among the largest chaebols, or companies of the nation. The company had operations in a wide range of businesses, including building ships, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established in different countries. Eventually, there were over 100 branches throughout the world. The corporation at its peak sold thousands of various items in over 130 nations. By the latter part of the 1990s the business had become significantly overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in the year 1999 and other businesses purchased most of Daewoo's holdings.