South Korea was experiencing a serious trade deficit in the early 1960s. The country's domestic market was not strong enough to support domestic industries. Following World War II, 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 following the withdrawal of the U.S. military. In the year 1953, the country was at peace finally, and South Korea began an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong in this period of economic emergence. Daewoo, which translates as "Great Universe," was established in the year 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the company will become a great success. This proved true, because Daewoo became among the biggest chaebols, or conglomerates of the country. The corporation had operations in a wide range of industries, like for example motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were over 100 branches all around the world. The company at its peak sold thousands of various items in over 130 countries. By the late 1990s the corporation had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled during 1999 and other corporations bought most of Daewoo's holdings.