South Korea was experiencing a serious trade deficit in the early 1960s. The domestic market of the country was not really that strong 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. North Korea, with its stronger military, wasted little time before invading the South after the US military withdrawal. In 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic growth, transforming quickly from an agrarian economy to a centrally planned, industrial economy. Determined to never again go through hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, that means "Great Universe," was founded in 1967.
The initial share capital of the company was only $18,000, but Kim along with his partners believed that the business will become a great success. This proved true, and Daewoo went on to become one of the nation's largest chaebols, or companies. The company had operations within a huge array of industries, like motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were greatly promoted and a network of offices was established in various nations. Eventually, there were more than 100 branches all over the world. The company at its peak sold thousands of different products in over 130 nations. By the latter part of the 1990s the company had become considerably overextended. The business was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other corporations bought most of the company's holdings.