During the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. Following WWII, 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. During the year 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic development, rapidly transforming 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 during this period of economic emergence. Daewoo, that translates as "Great Universe," was established in the year 1967.
The initial share capital of the corporation was just $18,000, but Kim together with his partners believed that the company will become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or corporations of the nation. The company had operations within a wide array of businesses, like motor vehicles, shipbuilding, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established in various nations. Ultimately, there were over 100 branches all around the world. The business at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the company had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in the year 1999 and other corporations bought most of the company's holdings.