In the early 1960s, South Korea was going through a serious trade deficit. The domestic market of the country was not really that strong to support domestic businesses. After World War II, when Korea was divided by the Allies, all the natural resources were in the territory north of the 38th parallel. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. During the year 1953, the country was at peace finally, and South Korea began 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 established by Kim Woo Choong during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in 1967.
Even if the corporation's initial share capital was just $18,000, Kim and his partners believed that the company will be successful. This proved true, and Daewoo went on to become amongst the nation's biggest chaebols, or conglomerates. The business had operations within a huge range of industries, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Ultimately, there were more than 100 branches throughout the globe. The corporation at its peak sold thousands of various items in over 130 countries. By the latter part of the 1990s the business had become considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other corporations bought most of Daewoo's holdings.