South Korea was experiencing a serious trade deficit in the early part of the 1960s. The domestic market of the country was not really that strong 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 following the US military withdrawal. In the year 1953, the country was at peace finally, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through 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 means "Great Universe," was founded in 1967.
The initial share capital of the company was just $18,000, but Kim together with his partners believed that the company will become a great success. This proved true, because Daewoo became amongst the largest chaebols, or businesses of the country. The corporation had operations in a wide range of industries, like for example building ships, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Ultimately, there were more than 100 branches all over the world. The corporation at its peak sold thousands of various items in over 130 countries. By the late 1990s the corporation had become significantly 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 purchased most of Daewoo's holdings.