South Korea was experiencing a serious trade deficit in the early part of the 1960s. 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. With its stronger military, North Korea, wasted little time before invading the South following the withdrawal of the U.S. military. During the year 1953, the nation was finally at peace, and South Korea started an intensive drive towards economic development, quickly transforming from an agrarian economy to an industrial, centrally planned economy. Determined to never again experience hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong in this period of economic emergence. Daewoo, which means "Great Universe," was established during the year 1967.
Even if the company's initial share capital was only $18,000, Kim as well as his partners believed that the company would be successful. This proved true, and Daewoo went on to become one of the nation's biggest chaebols, or corporations. The corporation had operations in a wide array of businesses, including motor vehicles, building ships, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were promoted heavily and a network of offices was established in various nations. Ultimately, there were more than 100 branches all around the world. The business at its peak sold thousands of different products in more than 130 nations. By the late 1990s the corporation had become significantly overextended. The company was really in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other businesses bought most of Daewoo's holdings.