South Korea was dealing with a serious trade deficit in the early part of the 1960s. The country's domestic market was not strong enough to support domestic businesses. 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 US military withdrawal. In 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of vital 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 company was just $18,000, but Kim and his partners believed that the business will become a great success. This proved true, because Daewoo became amongst the biggest chaebols, or companies of the country. The company had operations in a wide range of industries, like for instance motor vehicles, building ships, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the world. The company at its peak sold thousands of different items in more than 130 countries. By the late 1990s the business had become considerably overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled during 1999 and other corporations purchased most of the company's holdings.