South Korea was going through a serious trade deficit during the early 1960s. The nation's domestic market was not strong enough to support domestic businesses. After World War II, 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 following the withdrawal of the U.S. military. In the year 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to a centrally planned, industrial 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.
The initial share capital of the corporation was only $18,000, but Kim along with his partners believed that the company would become a great success. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or businesses. The corporation had operations in a huge array of industries, like for instance shipbuilding, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were over 100 branches all over the globe. The business at its peak sold thousands of various items in over 130 nations. By the late 1990s the corporation had become significantly overextended. The corporation was really 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 purchased most of Daewoo's holdings.