South Korea was dealing with a serious trade deficit in the early 1960s. The domestic market of the country was not truly that strong 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. With its stronger military, North Korea, wasted little time before invading the South following the US military withdrawal. In 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic growth, transforming quickly 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 translates as "Great Universe," was established during 1967.
The initial share capital of the corporation was only $18,000, but Kim and his partners believed that the company would become a great success. This proved true, and Daewoo went on to become amongst the nation's largest chaebols, or businesses. The business had operations within a huge array of businesses, like for example motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Ultimately, there were more than 100 branches throughout the world. The company at its peak sold thousands of various items in over 130 nations. By the late 1990s the company had become significantly overextended. The business was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other corporations bought most of Daewoo's holdings.