[비즈한국] Chairman Lee Byung-chul of Daol Financial Group has decided to purchase additional shares of Daol Investment Securities030210, drawing significant attention to the background of this move. Some in the financial sector interpret this as an effort to strengthen his control. This is because, while Chairman Lee is the largest shareholder, the second-largest shareholder, DB Insurance005830, and the third-largest shareholder, Secco Group, also hold substantial stakes.
Chairman Lee Byung-chul secured management rights in 2018 when he became the largest shareholder of KTB Investment & Securities. KTB Investment & Securities changed its name to Daol Investment Securities in 2022. Chairman Lee solidified his management structure upon being promoted from Vice Chairman to Chairman in 2021.
The possibility of a management dispute at Daol Investment Securities began to emerge in 2023, when Kim Ki-soo, former CEO of Presto Investment Advisory (now Presto Investment Discretionary), and his wife Choi Soon-ja purchased shares in the company. According to the annual report, as of the end of 2023, the shareholders of Daol Investment Securities were Chairman Lee Byung-chul (24.82%), former CEO Kim Ki-soo (7.08%), and Choi Soon-ja (6.40%). Although Chairman Lee was the largest shareholder, former CEO Kim Ki-soo held a stake that could not be overlooked.
Chairman Lee Byung-chul and former CEO Kim Ki-soo have reportedly clashed on several occasions. For instance, at the Daol Investment Securities general shareholders' meeting in March 2024, former CEO Kim's side proposed the creation of a recommendation-based shareholder proposal system, changes to the number of directors, and capital expansion through paid-in capital increases, all of which were rejected.
Last year, the shareholder composition of Daol Investment Securities changed once again. DB Insurance acquired the stake previously held by former CEO Kim Ki-soo's side. Additionally, Secco Group—comprising Heungkook Savings Bank, O2 Savings Bank, and Investor United—along with Cape Investment & Securities064820, began purchasing shares. As of the end of last year, the shareholding structure was reorganized, with Chairman Lee Byung-chul at 24.82%, DB Insurance at 9.73%, Secco Group at 9.35%, and Cape Investment & Securities at 7.34%.
Secco Group and Cape Investment & Securities disclosed their purpose of holding Daol Investment Securities shares as "simple investment." In contrast, DB Insurance listed its purpose as "general investment." Simple investment implies holding shares for the purpose of investment returns. General investment, however, allows for more active shareholder participation, such as proposing shareholder resolutions on executive compensation or dividends. Chairman Lee has no choice but to be wary of DB Insurance.
The structure is not one where Chairman Lee holds absolute control. If Secco Group and Cape Investment & Securities were to change their investment purpose and side with DB Insurance, their combined stake would exceed that of Chairman Lee. However, Cape Investment & Securities is known to be a shareholder friendly toward Chairman Lee.
Given this situation, Chairman Lee's decision to buy more shares has drawn interest from the financial sector. In February of this year, he increased his stake to 25% by receiving treasury shares as a bonus. He then announced plans on May 19 to purchase an additional 3.75% stake for 9 billion won. Once completed, his total stake in Daol Investment Securities will rise to 28.75%. The 3.75% stake he is acquiring represents the remaining shares held by former CEO Kim Ki-soo's side. Daol Investment Securities stated in a disclosure that the purchase is intended to "strengthen responsible management."
Although Chairman Lee's stake is increasing, it is not at an absolute level. In the event of a proxy battle at the shareholders' meeting between Chairman Lee and DB Insurance, the votes of minority shareholders will be critical. Currently, the assessment of Chairman Lee is positive, as Daol Investment Securities' performance has been on an upward trend. The firm turned to a net profit of 43.9 billion won in 2025, from a net loss of 45.5 billion won in 2024. Consequently, dividends were increased from 150 won per share last year to 240 won this year (based on common stock).
However, the stock price trend remains unstable. After closing at 3,510 won on December 30 last year, it rose to 5,740 won in February this year, but has since declined. The current stock price is hovering in the low 4,000-won range. If the stock price fails to rebound, discontent among minority shareholders is bound to grow.
Recently, Daol Investment Securities has been actively engaging in shareholder return policies. In March, it announced a "Corporate Value Enhancement Plan" and presented mid-to-long-term goals, including an ROE (Return on Equity) of 10% or more and a total shareholder return ratio of 40% or more by 2030. Daol Investment Securities stated in a disclosure that it will "enhance shareholder trust by strengthening communication channels and providing transparent corporate information."