South Korea was dealing with a serious trade deficit in the early 1960s. The nation's domestic market was not strong enough to support domestic industries. After 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 after the US military withdrawal. In 1953, the country was at peace finally, and South Korea began an intensive drive towards economic development, transforming quickly from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience 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 founded during the year 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, because Daewoo became among the biggest chaebols, or corporations of the country. The company had operations within a wide range of businesses, like for instance building ships, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established in different nations. Eventually, there were more than 100 branches all around the globe. The corporation at its peak sold thousands of different items in over 130 countries. By the late 1990s the business had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the corporation dismantled during 1999 and other businesses bought most of Daewoo's holdings.