In the early part of the 1960s, South Korea was dealing with a serious trade deficit. The domestic market of the nation was not really that strong to support domestic businesses. Following World War II, when the Allies divided Korea, 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 following the withdrawal of the U.S. military. During 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned 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 established during the year 1967.
Even though the company's initial share capital was just $18,000, Kim as well as his partners believed that the company will be successful. This proved true, because Daewoo became amongst the largest chaebols, or conglomerates of the nation. The company had operations in a wide array of industries, including shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, financial services and trading. Exports were promoted a lot and a network of offices was established abroad. Ultimately, there were over 100 branches all over the world. The business at its peak sold thousands of various products in more than 130 nations. By the late 1990s the business had become considerably overextended. The business was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in 1999 and other businesses bought most of Daewoo's holdings.