South Korea was going through a serious trade deficit in the early 1960s. The domestic market of the nation was not truly that strong to support domestic industries. Following World War II, when Korea was divided by the Allies, 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 at peace finally, and South Korea started an intensive drive towards economic development, transforming quickly from an agrarian economy to a centrally planned, industrial 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 means "Great Universe," was established in the year 1967.
Even if the corporation's initial share capital was only $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became amongst the largest chaebols, or corporations of the country. The business had operations within a wide array of businesses, including motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Eventually, there were more than 100 branches all around the globe. The company at its peak sold thousands of different items in over 130 countries. By the late 1990s the company had become considerably overextended. The company was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.