South Korea was experiencing a serious trade deficit during the early part of the 1960s. The domestic market of the country was not really that strong to support domestic industries. After WWII, when Korea was divided by the Allies, 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 US military withdrawal. In the year 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic growth, rapidly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience 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 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 nation. The business had operations within a wide array of businesses, like building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were over 100 branches throughout 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 business had become considerably overextended. The corporation was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.