South Korea was going through a serious trade deficit during the early part of the 1960s. The country's domestic market was not strong enough to support domestic businesses. After WWII, 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 withdrawal of the U.S. military. In 1953, the country was at peace finally, and South Korea started an intensive drive towards economic growth, rapidly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through 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, that translates as "Great Universe," was established during the year 1967.
Even though the company's initial share capital was just $18,000, Kim and his partners believed that the company would be successful. This proved true, because Daewoo became amongst the largest chaebols, or businesses of the country. The company had operations within a huge array of industries, like motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established in various countries. Eventually, there were over 100 branches all over the globe. The corporation at its peak sold thousands of different products in more than 130 countries. By the latter part of the 1990s the company had become significantly overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.