In the early part of the 1960s, South Korea was dealing with a serious trade deficit. The nation's domestic market was not strong enough to support domestic industries. Following World War II, 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 after the US military withdrawal. In 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, quickly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through 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 translates as "Great Universe," was established during the year 1967.
Even though the company'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 corporations of the nation. The company had operations within a huge range of businesses, like motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established in various nations. Ultimately, there were more than 100 branches all over the globe. The corporation at its peak sold thousands of different products in over 130 countries. By the latter part of the 1990s the company had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other businesses bought most of Daewoo's holdings.