South Korea was dealing with a serious trade deficit during the early 1960s. The domestic market of the nation was not really that strong to support domestic businesses. After 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 growth, quickly transforming 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, which means "Great Universe," was established during 1967.
Even though the company's initial share capital was only $18,000, Kim and his partners believed that the business will be successful. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or conglomerates. The business had operations within a wide array of businesses, like for instance building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established in various countries. Ultimately, there were over 100 branches all over the globe. The business at its peak sold thousands of various products in more than 130 countries. By the late 1990s the company had become considerably overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.