In the early 1960s, South Korea was dealing with a serious trade deficit. The nation's domestic market was not strong enough 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 withdrawal of the U.S. military. In the year 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, rapidly 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 in this period of economic emergence. Daewoo, that translates as "Great Universe," was established in 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 one of the country's largest chaebols, or corporations. The corporation had operations within a wide range of industries, like motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were heavily promoted and a network of offices was established abroad. Ultimately, there were over 100 branches all around the globe. The company at its peak sold thousands of various products in over 130 nations. By the latter part of the 1990s the business had become considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during the year 1999 and other corporations bought most of Daewoo's holdings.