South Korea was experiencing a serious trade deficit in the early part of the 1960s. The nation's domestic market was not strong enough to support domestic businesses. Following 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. During the year 1953, the country was finally at peace, and South Korea began an intensive drive towards economic development, rapidly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, that means "Great Universe," was founded during 1967.
The initial share capital of the corporation was just $18,000, but Kim along with his partners believed that the company would become a great success. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or companies. The business had operations within a huge array of industries, like motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established in various nations. Eventually, there were over 100 branches throughout the world. The corporation at its peak sold thousands of various products in over 130 nations. By the late 1990s the company had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled in 1999 and other corporations purchased most of the company's holdings.