In the early 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the country was not truly that strong to support domestic industries. After 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. In 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, rapidly transforming from an agrarian economy to an industrial, centrally planned 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, which translates as "Great Universe," was established in 1967.
Even if the corporation's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or businesses. The business had operations in a wide range of industries, like building ships, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established in various nations. Ultimately, there were over 100 branches throughout the world. The company at its peak sold thousands of different items in more than 130 nations. By the latter part of the 1990s the business had become considerably overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled during 1999 and other corporations bought most of the company's holdings.