In the early 1960s, South Korea was going through a serious trade deficit. The nation's domestic market was not strong enough to support domestic industries. 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. 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 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 founded by Kim Woo Choong during this period of economic emergence. Daewoo, that means "Great Universe," was founded in the year 1967.
Even if the corporation's initial share capital was only $18,000, Kim and his partners believed that the company will be successful. This proved true, because Daewoo became among the largest chaebols, or corporations of the country. The corporation had operations within a huge range of industries, like for instance motor vehicles, shipbuilding, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established abroad. Ultimately, there were more than 100 branches throughout the world. The business at its peak sold thousands of different products in over 130 countries. By the latter part of the 1990s the company had become considerably overextended. The company was seriously in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled during 1999 and other corporations bought most of the company's holdings.