During the early part of the 1960s, South Korea was going through a serious trade deficit. The domestic market of the country was not really that strong to support domestic industries. After World War II, 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 after the US military withdrawal. During 1953, the nation was at peace finally, and South Korea started an intensive drive towards economic growth, transforming quickly 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 founded by Kim Woo Choong in this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in the year 1967.
Even if 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, and Daewoo went on to become one of the nation's largest chaebols, or conglomerates. The business had operations in a wide array of businesses, like for example motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, trading and financial services. Exports were heavily promoted and a network of offices was established in various nations. Eventually, there were over 100 branches all over the world. The company at its peak sold thousands of different items in more than 130 countries. By the latter part of the 1990s the corporation had become considerably overextended. The company was seriously in debt, and Kim faced charges of corporate wrong doing. The South Korean government ordered the company dismantled during 1999 and other corporations bought most of the company's holdings.