South Korea was experiencing a serious trade deficit during the early part of the 1960s. The nation's domestic market was not strong enough 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. North Korea, with its stronger military, wasted little time before invading the South after the withdrawal of the U.S. military. In the year 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic growth, transforming rapidly 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, that means "Great Universe," was founded during 1967.
The initial share capital of the corporation was just $18,000, but Kim together with his partners believed that the company would become a great success. This proved true, because Daewoo became among the biggest chaebols, or conglomerates of the nation. The business had operations in a huge array of businesses, including building ships, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were over 100 branches throughout the world. The corporation at its peak sold thousands of various products in over 130 countries. By the late 1990s the corporation had become considerably overextended. The business was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during 1999 and other corporations bought most of the company's holdings.