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 WWII, 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 nation was finally at peace, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through 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, which means "Great Universe," was established in 1967.
The initial share capital of the corporation was just $18,000, but Kim together with his partners believed that the company would become a great success. This proved true, because Daewoo became amongst the largest chaebols, or businesses of the nation. The corporation had operations in a huge range of industries, like for instance motor vehicles, building ships, 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 over 100 branches throughout the world. The company at its peak sold thousands of different items in over 130 nations. By the late 1990s the company had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in 1999 and other corporations bought most of Daewoo's holdings.