South Korea was going through a serious trade deficit in the early 1960s. The country's domestic market was not strong enough to support domestic businesses. 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 withdrawal of the U.S. military. In 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic development, transforming quickly from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that translates as "Great Universe," was founded during 1967.
Even if the corporation's initial share capital was just $18,000, Kim and his partners believed that the company will be successful. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or conglomerates. The company had operations in a huge range of businesses, including motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Eventually, there were over 100 branches all over the world. The business at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the company had become considerably overextended. The corporation was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other businesses purchased most of Daewoo's holdings.