In the early part of the 1960s, South Korea was experiencing a serious trade deficit. The domestic market of the country was not truly that strong to support domestic industries. Following World War II, when Korea was divided by the Allies, 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 after the US military withdrawal. During 1953, the nation was finally at peace, 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 during 1967.
Even though the company's initial share capital was just $18,000, Kim as well as his partners believed that the business will be successful. This proved true, and Daewoo went on to become one of the country's largest chaebols, or conglomerates. The business had operations within a wide range of industries, including 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 in various countries. Ultimately, there were more than 100 branches throughout the globe. The company at its peak sold thousands of various items in more than 130 nations. By the latter part of the 1990s the company had become significantly overextended. The business was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled during 1999 and other corporations purchased most of Daewoo's holdings.