South Korea was experiencing a serious trade deficit during the early 1960s. The domestic market of the nation was not really that strong to support domestic businesses. After WWII, when Korea was divided by the Allies, 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. During 1953, the country was at peace finally, and South Korea started an intensive drive towards economic growth, quickly transforming from an agrarian economy to a centrally planned, industrial 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, that translates as "Great Universe," was founded in the year 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the company will become a great success. This proved true, because Daewoo became amongst the largest chaebols, or corporations of the nation. The business had operations in a huge array of industries, including motor vehicles, building ships, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established in different nations. Eventually, there were over 100 branches all around the globe. The company at its peak sold thousands of different products in over 130 countries. By the late 1990s the corporation had become considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in 1999 and other businesses bought most of the company's holdings.