During the early part of the 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. Following World War II, 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 withdrawal of the U.S. military. In 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, rapidly transforming from an agrarian economy to a centrally planned, industrial 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 established during the year 1967.
The initial share capital of the corporation was only $18,000, but Kim together with his partners believed that the business will become a great success. This proved true, because Daewoo became among the largest chaebols, or conglomerates of the country. The company had operations in a wide array of businesses, like motor vehicles, shipbuilding, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted heavily and a network of offices was established in various countries. Ultimately, there were more than 100 branches all around the globe. The business at its peak sold thousands of different items in more than 130 nations. By the latter part of the 1990s the corporation had become considerably overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in 1999 and other corporations bought most of Daewoo's holdings.