[비즈한국] The origin of DB Group is Miryung Construction (now Dongbu Construction005960), established by Founder Kim Jun-ki (82) in 1969. Since then, DB Group has grown into a major conglomerate, and Founder Kim Jun-ki's eldest son, DB Group Honorary Chairman Kim Nam-ho (51), and eldest daughter, DB Group Vice Chairman Kim Joo-won (53), have also emerged at the forefront of management. Although Honorary Chairman Kim Nam-ho stepped down from frontline management after being promoted from Chairman to Honorary Chairman in June last year, he is not completely retired from management, as he still serves as an executive director at DB Inc.
Except for Founder Kim Jun-ki, Honorary Chairman Kim Nam-ho, and Vice Chairman Kim Joo-won, not much is known about the DB Group owner family. Bizhankook's investigation revealed that Honorary Chairman Kim Nam-ho's cousins, Kim Byung-jik, Vice President of DB Inc. (54), and Kim Byung-eun, Managing Director of DB Insurance005830 (50), are also working at DB Group affiliates. Vice President Kim Byung-jik and Managing Director Kim Byung-eun are the children of Founder Kim Jun-ki's younger sister, Kim Myung-hee (79). Kim Myung-hee married former Korean Bar Association President Kim Pyung-woo (81) in 1971 and gave birth to their two sons, Kim Byung-jik and Kim Byung-eun, in 1972 and 1976, respectively.
Former President Kim Pyung-woo is a former judge-turned-lawyer, famous for being the second son of the late novelist Kim Dong-ni. He also served as a defense attorney for former President Park Geun-hye when the Choi Soon-sil gate broke out in 2017. It is known that Kim Myung-hee and former President Kim Pyung-woo have divorced.
Vice President Kim Byung-jik serves as the Head of the Business Strategy Office at DB Inc., while Managing Director Kim Byung-eun is the Head of the Management Support Division at DB Insurance. Both hold significant positions within their respective companies. However, the atmosphere of the companies they belong to is different.
DB Inc. saw improvements in key performance indicators such as revenue and operating profit in the first quarter of this year. According to the quarterly report, DB Inc.'s consolidated revenue increased by 17.52% from 141.9 billion won in the first quarter of last year to 166.8 billion won in the first quarter of this year, and its operating profit increased by 7.95% from 17.4 billion won to 18.7 billion won during the same period.
On the other hand, the consolidated net profit of DB Insurance decreased by 44.46% from 431.4 billion won in the first quarter of last year to 239.6 billion won in the first quarter of this year. A DB Insurance official stated, "Although insurance operating profit was sluggish due to the impact of a one-time major accident in the first quarter, we plan to expand profits by continuously implementing measures to improve profitability."
The outlook is not entirely positive either. Park Hye-jin, a researcher at Daishin Securities, said regarding DB Insurance, "The sluggish performance in long-term and general insurance has been continuing since last year," adding, "The rising risk loss ratio due to increased claims for 3rd and 4th generation medical expenses and surgery costs is a point of concern."
Meanwhile, in May of this year, DB Insurance completed the acquisition of a 100% stake in the U.S. insurance company 'Prosight' (Protegra). DB Insurance spent approximately 2.3 trillion won on this acquisition. While there are positive evaluations regarding the expansion of DB Insurance's overseas presence, it could lead to significant losses if it yields lower-than-expected results given the massive investment.
If the poor performance of DB Insurance continues, it could negatively impact the assessment of Managing Director Kim Byung-eun. Vice President Kim Byung-jik and Managing Director Kim Byung-eun hold 0.03% and 0.02% of DB Inc. shares, respectively, and hold no other shares in DB Group affiliates. Furthermore, while Honorary Chairman Kim Nam-ho and Vice Chairman Kim Joo-won work at DB Inc., Managing Director Kim Byung-eun is the only member of the owner family among the executives at DB Insurance. It is inevitable that attention will be focused on Managing Director Kim Byung-eun.
Kim Ji-young, a researcher at Kyobo Securities, stated regarding DB Insurance, "Although insurance profit shrank due to rising loss ratios in long-term and auto insurance in the first quarter of this year, it is expected to improve after the second quarter when the effect of premium increases begins to show."