In the early 1960s, South Korea was experiencing a serious trade deficit. The nation's domestic market was not strong enough to support domestic industries. After WWII, when the Allies divided Korea, 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 withdrawal of the U.S. military. During the year 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, transforming quickly from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of essential 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 in the year 1967.
Even though the corporation's initial share capital was just $18,000, Kim and his partners believed that the company would be successful. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or companies. The company had operations within a huge array of industries, like for instance motor vehicles, shipbuilding, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Eventually, there were over 100 branches all over the globe. The company at its peak sold thousands of different items in more than 130 countries. By the late 1990s the company had become considerably overextended. The company was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled during the year 1999 and other businesses bought most of Daewoo's holdings.