DB Group Founder Kim Joongi Denies Charges of Submitting False Affiliate Data

"We Do Not Hold Controlling Power"

The legal team representing Kim Joongi, founding chairman of DB Group, denied the charges at the first trial regarding allegations of submitting false materials related to the designation of public notification-targeted large business groups.

Kim Joong-ki, Founder Chairman of DB Group. Photo by Yonhap News Agency

On September 4, Judge Lee Hwangi of the Seoul Central District Court’s Criminal Division 26 held the first public trial for Chairman Kim, who is charged with violating the Fair Trade Act.

Kim’s legal team contends that he does not have controlling power over the omitted companies. Kim’s attorney stated, “In 1999, the Fair Trade Commission excluded the company under the Donggok Social Welfare Foundation from DB’s affiliates. Subsequently, it was incorporated after an additional investigation, and currently, an administrative lawsuit to revoke the Fair Trade Commission’s disposition is underway.”

The attorney further argued, “Despite the absence of equity ties between DB Group and the concerned companies, both the prosecution and the Fair Trade Commission are presuming control based on indirect facts unrelated to actual controlling power. Therefore, it is difficult to conclude that the defendant recognized any falsehood.”

Chairman Kim is accused of omitting 15 companies under the Donggok Social Welfare Foundation from the list of affiliated companies when submitting materials for the designation of public notification-targeted large business groups to the Fair Trade Commission. According to the Fair Trade Commission, DB allegedly used foundation companies to maintain controlling power for the owner family and realize private gains starting around 2010, and in 2016, established official positions to oversee these companies and exert direct control. The commission filed a criminal complaint against Chairman Kim in February of this year.

The next trial is scheduled for January 15th of next year.

Meanwhile, the court issued a summary order with a fine of 150 million won in May after the prosecution indicted Kim through summary proceedings. However, Kim objected and requested a formal trial.

This content was produced with the assistance of AI translation services.