Exclusive
Former Daou Kiwoom Chairman Kim Ik-rae Newly Appointed as Non-Executive Director of Kiwoom F&I

[비즈한국] It has been confirmed that Kim Ik-rae (75), former chairman of Daou Kiwoom Group, has been newly appointed as a non-executive director of Kiwoom F&I. Although former Chairman Kim stepped down as chairman of Daou Kiwoom Group in 2023, he has maintained his positions as a non-executive director at subsidiaries Daou Data032190 and Saramin143240. Recently, while being reappointed as a non-executive director at both Daou Data and Saramin, he has also taken on a non-executive directorship at Kiwoom F&I. Even though he has resigned as group chairman, former Chairman Kim is expanding his influence within the group by newly joining the boards of its subsidiaries.

Kiwoom F&I is a non-performing loan (NPL) investment firm established in 2020. Kiwoom Securities and Daou Technology023590 hold 98% and 2% stakes in Kiwoom F&I, respectively. Kiwoom F&I’s performance is on an upward trend. Its revenue grew by 93.41% from 48.7 billion won in 2023 to 94.3 billion won in 2024, and its operating profit increased by 55.55% from 10.6 billion won to 16.5 billion won during the same period.

Kim Dong-jun (41), the eldest son of former Chairman Kim Ik-rae and CEO of Kiwoom Private Equity (PE), was appointed as a non-executive director of Kiwoom F&I in March 2023. His three-year term was set to run until March 2026. Kiwoom F&I cited "expertise in management and investment" as the reason for appointing CEO Kim Dong-jun.

However, CEO Kim suddenly resigned as a non-executive director of Kiwoom F&I this March, with one year remaining in his term. The official reason for his resignation was "personal circumstances." Subsequently, he was recently appointed as an internal director of Kiwoom Securities. By stepping down as a non-executive director of Kiwoom F&I, he moved to serve on the board of Kiwoom Securities, a core subsidiary of Daou Kiwoom Group. The vacancy left by CEO Kim Dong-jun was immediately filled by his father, former Chairman Kim Ik-rae.

Former Chairman Kim resigned as chairman of Daou Kiwoom Group in May 2023, taking responsibility for the stock market crash linked to Societe Generale (SG) Securities. However, he maintained his non-executive directorships at subsidiaries Daou Data and Saramin. Although his terms were set to expire this March, his reappointment was recently confirmed (Related article: [Exclusive] Former Daou Kiwoom Chairman Who Resigned Still Pushing for Reappointment as Daou Data Director).

Former Chairman Kim Ik-rae's reappointment as a non-executive director at Daou Data and Saramin can be seen as a continuation of his existing duties. However, his appointment as a non-executive director at Kiwoom F&I is a new appointment rather than a renewal. It appears that since stepping down as chairman, he has been continuously expanding his influence over Daou Kiwoom Group.

A non-executive director refers to a director who is not involved in the day-to-day management of the company. Non-executive directors do not participate in routine company business and only attend board meetings to vote on resolutions. Therefore, former Chairman Kim Ik-rae is not responsible for the overall management of Kiwoom F&I. However, as major decisions for Kiwoom F&I are handled by the board, his influence cannot be ignored. Furthermore, considering that he is the owner of Daou Kiwoom Group, it is difficult for other directors to disregard his wishes.

The financial sector holds a negative outlook on Kiwoom F&I's performance this year. With former Chairman Kim Ik-rae joining the board, any deterioration in Kiwoom F&I's performance could negatively impact the assessment of him. Park Gwang-sik, a senior researcher at Korea Ratings, evaluated Kiwoom F&I by stating, "Given the expansion of the auction market supply and the possibility of a real estate market slowdown, there is an inherent risk of reduced profitability due to potential delays in the recovery of loan receivables."

BizHankook contacted Kiwoom F&I to request a statement regarding this matter, but did not receive a response.