South Korea was going through a serious trade deficit during 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. North Korea, with its stronger military, wasted little time before invading the South following the US military withdrawal. In 1953, the country was finally at peace, and South Korea started an intensive drive towards economic growth, rapidly transforming from an agrarian economy to an industrial, centrally planned 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 in this period of economic emergence. Daewoo, which means "Great Universe," was established during the year 1967.
Even though the company's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became among the largest chaebols, or conglomerates of the country. The business had operations within a wide array of businesses, including motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were promoted a lot and a network of offices was established in various countries. Ultimately, there were over 100 branches all over the globe. The company at its peak sold thousands of different products in over 130 nations. By the latter part of the 1990s the business had become significantly overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other businesses bought most of the company's holdings.