South Korea was going through 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 after the US military withdrawal. In the year 1953, the country was finally at peace, 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 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 founded during 1967.
The initial share capital of the company was only $18,000, but Kim along with his partners believed that the company would become a great success. This proved true, because Daewoo became among the biggest chaebols, or corporations of the country. The business had operations in a huge array of businesses, like for example building ships, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were over 100 branches all around the globe. The company at its peak sold thousands of different products in more than 130 nations. By the latter part of the 1990s the corporation had become considerably overextended. The corporation was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.