South Korea was dealing with a serious trade deficit in the early part of the 1960s. The domestic market of the nation was not truly that strong to support domestic businesses. After WWII, 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 following the withdrawal of the U.S. military. During the year 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned 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 translates as "Great Universe," was established during the year 1967.
The initial share capital of the company was only $18,000, but Kim and his partners believed that the business would become a great success. This proved true, and Daewoo went on to become among the country's largest chaebols, or businesses. The company had operations in a huge array of businesses, including building ships, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, financial services and trading. Exports were promoted heavily and a network of offices was established abroad. Ultimately, there were more than 100 branches throughout the globe. The business at its peak sold thousands of various products in over 130 countries. By the latter part of the 1990s the business had become significantly overextended. Daewoo was seriously in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the conglomerate dismantled in the year 1999 and other corporations purchased most of the company's holdings.