In the early part of the 1960s, South Korea was dealing with a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. Following World War II, when the Allies divided Korea, 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 following the withdrawal of the U.S. military. During 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, transforming rapidly from an agrarian economy to an industrial, centrally planned 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 in this period of economic emergence. Daewoo, that means "Great Universe," was established in the year 1967.
Even if the company's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became among the biggest chaebols, or conglomerates of the nation. The company had operations within a wide array of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were heavily promoted and a network of offices was established in various countries. Eventually, there were over 100 branches all around the globe. The company at its peak sold thousands of various products in more than 130 countries. By the late 1990s the business had become considerably overextended. The corporation was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during 1999 and other corporations bought most of Daewoo's holdings.