During the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the country was not truly that strong to support domestic industries. After World War II, 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 following the US military withdrawal. In 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience 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 means "Great Universe," was established in the year 1967.
Even though the company's initial share capital was just $18,000, Kim as well as his partners believed that the business would be successful. This proved true, and Daewoo went on to become among the nation's largest chaebols, or corporations. The company had operations within a huge array of industries, including motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established in different nations. 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 business had become significantly overextended. Daewoo was really 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.