South Korea was dealing with a serious trade deficit during the early part of the 1960s. The domestic market of the country was not really that strong to support domestic industries. 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 after the withdrawal of the U.S. military. During 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, rapidly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience 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 corporation was just $18,000, but Kim and his partners believed that the company 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 range of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were promoted heavily and a network of offices was established in various countries. Ultimately, there were more than 100 branches all over the world. The business at its peak sold thousands of various products in over 130 nations. By the latter part of the 1990s the business had become significantly overextended. The company was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other corporations bought most of the company's holdings.