The conflict between Kim Jun-gi (81), the founder and chairman of DB Group, ranked 40th in the business world, and his son, Kim Nam-ho (50), the honorary chairman, is coming to light. There are also speculations that if the conflicts between Chairman Kim and Honorary Chairman Kim are not resolved, there will be changes in the group's succession structure.
Honorary Chairman Kim stepped down as chairman in June, about five years after he took over the position in July 2020. This move was in accordance with the intentions of Chairman Kim, who stepped down from the chairmanship in 2017 due to allegations of sexual assault and harassment against a housekeeper and a secretary, but returned to management as a non-registered executive in 2021. There are projections that Honorary Chairman Kim may also step down from the board of directors in March 2027.
During the time Honorary Chairman Kim held the chairmanship, it is known that internal executive appointments were made according to Chairman Kim's wishes. When Lee Soo-kwang (81), former president of DB Insurance, was appointed as the new chairman in June, there were discussions in business circles suggesting that Chairman Kim had ousted his estranged son and placed an associate in the chairmanship.
The relationship between the two is said to have deteriorated decisively after Chairman Kim stepped down and lived in hiding in the United States. Honorary Chairman Kim's sister, Kim Joo-won (53), the vice chairperson of DB Group, reportedly took good care of their father, while Honorary Chairman Kim did not. It is also reported that there was conflict between Honorary Chairman Kim and Chairman Kim's close aides after he took over as chairman. There are reports that they quarreled over funeral matters when Chairman Kim's wife, Kim Jeong-hee, passed away in 2021.
The two are known to have had differences of opinion regarding the sale of DB HiTek. DB HiTek, a semiconductor foundry subsidiary of DB Group, has continued to invest despite the poor semiconductor market, according to Chairman Kim's decisions.
DB HiTek (formerly Dongbu HiTek), created by the merger of Dongbu Electronics and Dongbu Hanong in 2007, recorded net losses until 2015, but with steady investment, it successfully turned to profit in 2015. In 2022, it achieved record-breaking results with sales of 1.66 trillion won, operating profit of 761.9 billion won, and net profit of 556.2 billion won.
DB Group is reportedly pursuing plans to sell DB HiTek to a domestic conglomerate, but the deal did not materialize. A business circle insider noted, "From Chairman Kim's perspective, who has nurtured the group, his son's decisions may not have been trustworthy."
Immediately after this, Chairman Kim secured additional equity in DB. At the end of 2021, Chairman Kim Jun-gi's equity in DB was 11.61%, but it increased to 15.91% after purchasing an additional 4.30% owned by the DB Jun-gi Cultural Foundation. Generally, to pass on ownership to children, one would lower their own equity and increase their children's equity, but he did the opposite.
Some are also suggesting that behind the series of events occurring within DB Group, besides 'father-son conflict,' there lies 'sibling rivalry.' It is said that Vice Chairperson Kim Joo-won wants to collaborate with her father to seize control of the group's management. Vice Chairperson Kim, after graduating from Seoul Arts High School and Yonsei University's music college, joined the group in 2021 as president of DB HiTek's U.S. subsidiary and has served as the group's vice chairperson since July 2022.
Currently, the equity in DB is 16.83% for Honorary Chairman Kim, 15.91% for Chairman Kim, and 9.87% for Vice Chairperson Kim Joo-won. Although Honorary Chairman Kim is the largest shareholder, if the father transfers his equity to his daughter, Vice Chairperson Kim could become the largest shareholder.
DB Group has stated that the possibility of a management dispute is low. A DB Group official stated, "Chairman Kim Jun-gi has been the group's head since its founding and is the sole individual in control. A management dispute cannot happen, and there is no father-son conflict or sibling rivalry."