During the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. After World War II, 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 after the withdrawal of the U.S. military. During 1953, the country was finally at peace, and South Korea started an intensive drive towards economic growth, 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded during 1967.
The initial share capital of the corporation was only $18,000, but Kim and his partners believed that the company would become a great success. This proved true, and Daewoo went on to become among the country's largest chaebols, or companies. The company had operations within a huge array of industries, like motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established in various nations. Eventually, there were over 100 branches all over the globe. The company at its peak sold thousands of different products in more than 130 countries. By the latter part of the 1990s the corporation had become considerably overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during 1999 and other businesses bought most of Daewoo's holdings.