[비즈한국] The recent appointment of Kim Nam-ho, chairman of DB012030 Group, to the position of Honorary Chairman has sparked chatter in the business community. Speculation has emerged that the move reflects the wishes of his father, DB Group founder Kim Joon-ki, and that the father and son may be in conflict over management styles.
DB Group announced that as of June, it has appointed Chairman Kim Nam-ho as Honorary Chairman and newly named Lee Soo-kwang, former CEO of DB Insurance005830, as the new Group Chairman. Regarding the appointment of Chairman Lee, DB Group explained, “It is a measure to enhance business competitiveness and survivability, centering on professional managers with proven management capabilities, in order to respond to the intensification of global trade wars, rapid changes in industrial structure, the AI revolution, and shifts in management paradigms.”
However, some in the business community are looking at DB Group’s move with skepticism. Honorary Chairman Kim Nam-ho was born in 1975 and is 50 years old. In contrast, Chairman Lee Soo-kwang was born in 1944 and is 81. While DB Group cited rapid industrial shifts, the AI revolution, and changing management paradigms as reasons for the leadership change, the newly appointed Chairman Lee is over 30 years older than the outgoing Honorary Chairman Kim Nam-ho.
DB Group’s recent performance has not been poor, either. The holding company, DB Inc., saw its revenue grow by 7.16% from 272.5 billion won in the first half of last year to 292 billion won in the first half of this year, while operating profit rose by 52.94% from 17.2 billion won to 26.2 billion won over the same period. Key DB Group affiliates, DB Insurance and DB HiTek000990, also saw their first-half revenue increase compared to the same period last year.
Because of this, some speculate that the influence of founder Kim Joon-ki played a role in the appointment of Honorary Chairman Kim Nam-ho. Chairman Lee Soo-kwang is known as a close associate of founder Kim Joon-ki. There are also rumors that a conflict arose when Kim Nam-ho pushed for the sale of DB HiTek, which the founder opposed.
Founder Kim Joon-ki serves as a non-registered executive at DB Inc. under the title of "Management Consultant." It is a position from which he can exert significant influence over DB Group. However, if founder Kim Joon-ki were to step to the forefront of management, he would likely face public backlash. He stepped down as DB Group chairman in 2017 following allegations of sexually harassing a domestic worker and his secretary. He later returned quietly as a non-registered executive at DB Inc. in 2021.
With Honorary Chairman Kim Nam-ho stepping down from the chairman role, attention in the business world is turning to Kim Joo-won, Vice Chairman of DB Group. Vice Chairman Kim Joo-won is the eldest daughter of founder Kim Joon-ki and the older sister of Honorary Chairman Kim Nam-ho. If the founder throws his support behind Vice Chairman Kim Joo-won, the succession structure of DB Group could shift. Currently, shareholders of DB Inc. include: △Honorary Chairman Kim Nam-ho (16.83%) △Founder Kim Joon-ki (15.91%) △Vice Chairman Kim Joo-won (9.87%). While Kim Nam-ho is the largest shareholder, the combined stake of the founder and Vice Chairman Kim Joo-won exceeds his own.
A notable point is that DB Inc. and DB HiTek have been consistently purchasing shares of DB Insurance this year. Until last year, neither company held shares in DB Insurance. Currently, the largest shareholder of DB Insurance is Honorary Chairman Kim Nam-ho, with a 9.01% stake. Given the founder’s significant influence over DB Inc., it is highly likely that the voting rights for the stake DB Inc. holds in DB Insurance would follow his will. This is why the share purchases have triggered behind-the-scenes talk. DB Group has stated that the acquisition of DB Insurance shares is for investment purposes only.
However, the business community considers the possibility of a management dispute at DB Group to be low. A business world official commented, “Since founder Kim Joon-ki stepped down, DB Group has been rotating the chairmanship between professional managers and the owner family,” adding, “While there may be conflicts between father and son, if a major battle were to erupt when Kim Nam-ho is already the largest shareholder, it would only result in mutual harm.”
Though rumors surrounding Honorary Chairman Kim Nam-ho are rife, he has yet to take any concrete action or make an official statement. Given Chairman Lee Soo-kwang’s advanced age, some predict that Kim Nam-ho could return as DB Group chairman within a few years. A DB Group official reiterated that there is no management dispute.