During the early 1960s, South Korea was dealing with a serious trade deficit. The nation's domestic market was not strong enough to support domestic businesses. After WWII, 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 US military withdrawal. During the year 1953, the country was at peace finally, and South Korea started an intensive drive towards economic development, rapidly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through hostile invasions and lack of vital 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 during the year 1967.
The initial share capital of the corporation was just $18,000, but Kim along with his partners believed that the company will become a great success. This proved true, and Daewoo went on to become one of the nation's largest chaebols, or businesses. The corporation had operations within a wide array of businesses, like shipbuilding, motor vehicles, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were more than 100 branches all around the world. The business at its peak sold thousands of various products in over 130 countries. By the latter part of the 1990s the company had become significantly overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The government of South Korea ordered the company dismantled in the year 1999 and other businesses purchased most of the company's holdings.