South Korea was going through a serious trade deficit during the early 1960s. The nation's domestic market was not strong enough to support domestic businesses. After 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 country was at peace finally, and South Korea began an intensive drive towards economic development, transforming quickly from an agrarian economy to an industrial, centrally planned 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, which means "Great Universe," was founded during 1967.
Even if the corporation's initial share capital was only $18,000, Kim as well as his partners believed that the business will be successful. This proved true, because Daewoo became among the biggest chaebols, or companies of the country. The corporation had operations within a huge range of businesses, like building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were over 100 branches all over the world. The business at its peak sold thousands of different products in more than 130 countries. By the late 1990s the business had become considerably overextended. Daewoo 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 the company's holdings.