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. After 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 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 development, 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 established by Kim Woo Choong during this period of economic emergence. Daewoo, that means "Great Universe," was founded during 1967.
The initial share capital of the corporation was only $18,000, but Kim along with his partners believed that the company will become a great success. This proved true, and Daewoo went on to become amongst the nation's largest chaebols, or corporations. The corporation had operations within a wide range of industries, including motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the globe. The company at its peak sold thousands of various items in over 130 countries. By the late 1990s the business had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other corporations bought most of the company's holdings.