South Korea was experiencing a serious trade deficit in the early 1960s. The country's domestic market was not strong enough to support domestic industries. After WWII, 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 the year 1953, the nation 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 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 founded during 1967.
Even if the company's initial share capital was only $18,000, Kim as well as his partners believed that the business would be successful. This proved true, because Daewoo became among the biggest chaebols, or companies of the country. The business had operations within a wide range of businesses, like building ships, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, trading and financial services. Exports were promoted a lot and a network of offices was established in various countries. Ultimately, there were more than 100 branches all around the world. The corporation at its peak sold thousands of different products in over 130 countries. By the late 1990s the corporation had become considerably overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the corporation dismantled in the year 1999 and other corporations bought most of Daewoo's holdings.