South Korea was going through a serious trade deficit during the early part of the 1960s. The domestic market of the country was not truly that strong 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. With its stronger military, North Korea, wasted little time before invading the South following the withdrawal of the U.S. military. During 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 go through 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 means "Great Universe," was founded in the year 1967.
Even though the corporation's initial share capital was just $18,000, Kim and his partners believed that the business would be successful. This proved true, because Daewoo became among the largest chaebols, or conglomerates of the nation. The company had operations within a wide array of businesses, like motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established abroad. Ultimately, there were more than 100 branches all around the globe. The company at its peak sold thousands of various products in more than 130 nations. By the latter part of the 1990s the corporation had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the corporation dismantled in 1999 and other corporations purchased most of the company's holdings.