South Korea was experiencing a serious trade deficit during the early part of the 1960s. The domestic market of the nation was not really 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. North Korea, with its stronger military, wasted little time before invading the South after the US military withdrawal. During 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, quickly transforming 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 founded by Kim Woo Choong in this period of economic emergence. Daewoo, which means "Great Universe," was established during the year 1967.
The initial share capital of the corporation was only $18,000, but Kim along with his partners believed that the business would become a great success. This proved true, because Daewoo became among the biggest chaebols, or companies of the nation. The business had operations in a wide array of businesses, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established in different countries. Eventually, there were over 100 branches all over the world. The corporation at its peak sold thousands of various items in more than 130 countries. 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 government of South Korea ordered the corporation dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.