South Korea was dealing with a serious trade deficit during the early 1960s. The nation's domestic market was not strong enough to support domestic businesses. Following 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 after 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 development, quickly transforming from an agrarian economy to a centrally planned, industrial 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in 1967.
The initial share capital of the corporation was only $18,000, but Kim together with his partners believed that the company will become a great success. This proved true, and Daewoo went on to become among the nation's biggest chaebols, or corporations. The corporation had operations within a huge range of businesses, like shipbuilding, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established in various countries. Eventually, there were over 100 branches throughout the world. The company at its peak sold thousands of different items in more than 130 nations. By the late 1990s the business had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled during 1999 and other businesses purchased most of Daewoo's holdings.