During the early 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. Following WWII, 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 withdrawal of the U.S. military. During the year 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming rapidly 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, that means "Great Universe," was founded in 1967.
Even though the corporation's initial share capital was only $18,000, Kim and his partners believed that the business would be successful. This proved true, and Daewoo went on to become among the country's biggest chaebols, or corporations. The business had operations in a huge array of businesses, like motor vehicles, shipbuilding, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were more than 100 branches all over the globe. The company at its peak sold thousands of different items in more than 130 nations. By the late 1990s the business had become considerably overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during 1999 and other businesses purchased most of Daewoo's holdings.