South Korea was experiencing a serious trade deficit during the early 1960s. The nation's domestic market was not strong enough to support domestic businesses. Following World War II, when Korea was divided by the Allies, 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 after the withdrawal of the U.S. military. In the year 1953, the country was finally at peace, and South Korea started an intensive drive towards economic growth, transforming rapidly from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience hostile invasions and lack of vital resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong in this period of economic emergence. Daewoo, which means "Great Universe," was founded in 1967.
The initial share capital of the company was only $18,000, but Kim along with his partners believed that the business would become a great success. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or businesses. The corporation had operations within a wide array of industries, including motor vehicles, shipbuilding, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were promoted heavily and a network of offices was established in different countries. Ultimately, there were more than 100 branches throughout the world. The business at its peak sold thousands of different items in more than 130 nations. By the late 1990s the business had become significantly overextended. Daewoo was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled during the year 1999 and other corporations purchased most of the company's holdings.