During the early 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the nation was not really that strong to support domestic businesses. Following World War II, 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 US military withdrawal. In the year 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, transforming rapidly from an agrarian economy to an industrial, centrally planned 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 in this period of economic emergence. Daewoo, that translates as "Great Universe," was founded in 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 nation's biggest chaebols, or businesses. The company had operations within a huge array of businesses, like motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Ultimately, there were more than 100 branches throughout the globe. The company at its peak sold thousands of different items in over 130 nations. By the late 1990s the corporation had become considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in 1999 and other businesses bought most of the company's holdings.