South Korea was going through a serious trade deficit in the early 1960s. The country's domestic market was not strong enough to support domestic businesses. 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. During the year 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic growth, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of essential 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 founded during 1967.
Even though the corporation's initial share capital was only $18,000, Kim as well as his partners believed that the business would be successful. This proved true, because Daewoo became amongst the largest chaebols, or conglomerates of the country. The company had operations in a huge range of businesses, including motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established abroad. Eventually, there were more than 100 branches all around the world. The business at its peak sold thousands of various products in over 130 countries. By the late 1990s the corporation had become significantly overextended. The corporation was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other businesses purchased most of Daewoo's holdings.