South Korea was dealing with a serious trade deficit during the early 1960s. The domestic market of the country was not really that strong to support domestic industries. Following WWII, 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 US military withdrawal. In 1953, the country 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 vital resources, South Korea became an economic miracle. Daewoo Group was established by Kim Woo Choong during this period of economic emergence. Daewoo, which means "Great Universe," was established in the year 1967.
The initial share capital of the corporation was just $18,000, but Kim and his partners believed that the company would become a great success. This proved true, and Daewoo went on to become amongst the nation's biggest chaebols, or corporations. The corporation had operations within a wide range of industries, including shipbuilding, motor vehicles, aerospace, heavy industry, 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 throughout the world. The business at its peak sold thousands of various items in over 130 nations. By the late 1990s the corporation had become considerably overextended. The company was really in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled in 1999 and other corporations bought most of Daewoo's holdings.