During the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. Following 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 following the withdrawal of the U.S. military. In 1953, the country 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 founded by Kim Woo Choong during this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in the year 1967.
The initial share capital of the corporation was just $18,000, but Kim along with his partners believed that the business would become a great success. This proved true, and Daewoo went on to become amongst the country's biggest chaebols, or companies. The company had operations within a huge range of industries, including shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established in various countries. Eventually, there were more than 100 branches all over the globe. The business at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the corporation had become significantly overextended. The company was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during the year 1999 and other businesses purchased most of Daewoo's holdings.