South Korea was dealing with a serious trade deficit in the early part of the 1960s. The domestic market of the country was not truly that strong to support domestic businesses. Following WWII, 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 following the US military withdrawal. In 1953, the country was finally at peace, 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 during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded during 1967.
The initial share capital of the company was just $18,000, but Kim and his partners believed that the company would become a great success. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or businesses. The company had operations within a huge range of businesses, including motor vehicles, building ships, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established in different nations. Eventually, there were over 100 branches throughout the globe. The corporation at its peak sold thousands of different products in over 130 nations. By the latter part of the 1990s the business had become significantly overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in 1999 and other corporations bought most of Daewoo's holdings.