South Korea was dealing with a serious trade deficit during the early part of the 1960s. The nation'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. North Korea, with its stronger military, wasted little time before invading the South following the withdrawal of the U.S. military. In 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was established during 1967.
Even though 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, because Daewoo became among the biggest chaebols, or companies of the country. The business had operations within a huge array of businesses, like for example shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were greatly promoted and a network of offices was established in different nations. Ultimately, there were over 100 branches throughout the globe. The corporation at its peak sold thousands of various products in more than 130 nations. By the late 1990s the company 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 during 1999 and other corporations bought most of Daewoo's holdings.