During the early part of the 1960s, South Korea was going through a serious trade deficit. The country's domestic market was not strong enough to support domestic businesses. 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 withdrawal of the U.S. military. During 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic development, quickly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, that means "Great Universe," was founded during the year 1967.
The initial share capital of the company was just $18,000, but Kim along with his partners believed that the business will become a great success. This proved true, and Daewoo went on to become one of the country's biggest chaebols, or companies. The corporation had operations within a wide array of industries, like motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted heavily and a network of offices was established in different countries. Eventually, there were more than 100 branches all around the globe. The corporation at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the corporation had become considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the corporation dismantled in the year 1999 and other corporations purchased most of the company's holdings.