In the early 1960s, South Korea was going through a serious trade deficit. The domestic market of the nation was not really that strong to support domestic industries. Following World War II, 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 after the withdrawal of the U.S. military. In 1953, the nation was at peace finally, and South Korea began an intensive drive towards economic development, transforming quickly from an agrarian economy to a centrally planned, industrial 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 during this period of economic emergence. Daewoo, that means "Great Universe," was founded in 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the company will become a great success. This proved true, and Daewoo went on to become amongst the country's largest chaebols, or conglomerates. The company had operations in a huge range of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, telecommunications, consumer electronics, trading and financial services. Exports were greatly promoted and a network of offices was established in various countries. Ultimately, there were more than 100 branches all over the world. The company at its peak sold thousands of different items in over 130 nations. By the latter part of the 1990s the corporation had become considerably overextended. Daewoo was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the conglomerate dismantled in 1999 and other businesses purchased most of Daewoo's holdings.