During the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the country 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 after the US military withdrawal. In 1953, the country was finally at peace, 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 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, that translates as "Great Universe," was founded in the year 1967.
Even if 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 amongst the largest chaebols, or corporations of the nation. The corporation had operations in a wide range of industries, like for instance motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were promoted a lot and a network of offices was established in different nations. Ultimately, there were more than 100 branches throughout the world. The company at its peak sold thousands of various items in more than 130 countries. By the latter part of the 1990s the business 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 corporations bought most of Daewoo's holdings.