In the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the country was not really that strong to support domestic businesses. Following World War II, when Korea was divided by the Allies, 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 following the withdrawal of the U.S. military. During the year 1953, the country was finally at peace, and South Korea began an intensive drive towards economic development, transforming quickly 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 founded by Kim Woo Choong in this period of economic emergence. Daewoo, that means "Great Universe," was founded during 1967.
The initial share capital of the corporation was just $18,000, but Kim along with his partners believed that the business would become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or corporations of the nation. The business had operations in a huge array of industries, like motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established in different nations. Eventually, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of various items in over 130 nations. By the late 1990s the corporation had become considerably overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled during 1999 and other businesses purchased most of Daewoo's holdings.