DB Group Faces Controversy Over Founder Chairman Kim Joon-ki's High Compensation

DB Group is in turmoil due to a series of incidents, including controversy over founder chairman Kim Joon-ki's high compensation and a complaint filed with the Fair Trade Commission for allegedly submitting false information about its affiliates. Founder Chairman Kim and his eldest son, honorary chairman Kim Nam-ho, are engaged in a legal dispute with civic groups over receiving tens of billions of won in compensation from DB Hi-Tek for several years while serving as unregistered executives.

The Fair Trade Commission has filed a summary indictment against founder chairman Kim Joon-ki with the prosecution, accusing him of intentionally omitting 15 companies, including the Donggok Social Welfare Foundation, during the affiliate reporting process to maintain control of the group.

Although Kim stepped down as chairman in 2017 following legal penalties for alleged sexual misconduct, the group subsequently moved to a professional management system and then to second-generation leadership. It has since initiated a second phase of professional management set to begin in June 2025.

Honorary Chairman Kim Nam-ho recently issued a statement denying rumors of a father-son feud, but this move is interpreted as a strategic step considering founder chairman Kim's influence. While honorary chairman Kim laid the groundwork for succession in 2004 by receiving shares of DB Inc. from his father, the current shareholding order in DB Inc. is Kim Nam-ho, founder chairman Kim Joon-ki, and vice chairman Kim Joo-won. The situation could change if founder chairman Kim lends his support to vice chairman Kim Joo-won's faction.

The recent series of events has brought DB Group back into the spotlight, raising questions about its governance structure and internal conflicts within the owner family. While the courts will determine the appropriateness of the matters, efforts from the founder chairman are needed to avoid unnecessary misunderstandings.