South Korea was going through a serious trade deficit during the early part of the 1960s. The domestic market of the country was not truly 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. 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, transforming quickly from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience 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, that translates as "Great Universe," was founded in the year 1967.
Even if the company's initial share capital was only $18,000, Kim as well as his partners believed that the company will be successful. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or businesses. The company had operations within a wide range of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, 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 all around the world. The company at its peak sold thousands of different products in more than 130 countries. By the latter part of the 1990s the company had become considerably overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during the year 1999 and other corporations purchased most of Daewoo's holdings.