South Korea was going through a serious trade deficit in the early 1960s. The country's domestic market was not strong enough to support domestic businesses. After 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 withdrawal of the U.S. military. During 1953, the country was finally at peace, and South Korea started an intensive drive towards economic growth, transforming quickly from an agrarian economy to an industrial, centrally planned 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, that translates as "Great Universe," was established in the year 1967.
Even if the company's initial share capital was just $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became among the largest chaebols, or businesses of the country. The company had operations within a wide range of businesses, like for instance shipbuilding, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were greatly promoted and a network of offices was established in various countries. Eventually, there were more than 100 branches all over the world. The corporation at its peak sold thousands of different items in more than 130 countries. By the late 1990s the company had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled during the year 1999 and other corporations purchased most of the company's holdings.