South Korea was going through a serious trade deficit in the early part of the 1960s. The domestic market of the nation was not really that strong to support domestic businesses. Following WWII, 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 after the US military withdrawal. During 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, which translates as "Great Universe," was founded during 1967.
The initial share capital of the company was only $18,000, but Kim and his partners believed that the business would become a great success. This proved true, because Daewoo became among the biggest chaebols, or conglomerates of the nation. The company had operations within a wide array of businesses, like motor vehicles, building ships, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established in various nations. Ultimately, there were over 100 branches throughout the world. 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 was accused of corporate wrong doing. The South Korean government ordered the company dismantled in the year 1999 and other businesses bought most of Daewoo's holdings.