South Korea was dealing with a serious trade deficit in the early part of the 1960s. The domestic market of the nation was not really that strong to support domestic businesses. Following WWII, when the Allies divided Korea, 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 following the withdrawal of the U.S. military. During the year 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic development, rapidly transforming from an agrarian economy to a centrally planned, industrial 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded during 1967.
Even though the company's initial share capital was only $18,000, Kim and his partners believed that the company would be successful. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or corporations. The business had operations within a huge array of businesses, like motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Eventually, there were over 100 branches throughout the world. The company at its peak sold thousands of different items in more than 130 nations. By the late 1990s the company had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.