The Korea Fair Trade Commission (KFTC) has taken significant action against Kim Jun-ki, the founder and chairman of DB Group, by filing a complaint for his alleged manipulation of shell affiliates designed to extend the family's control over the business empire. On December 8, the KFTC announced it had uncovered that Kim submitted misleading data regarding the group's corporate structure, specifically failing to disclose key subsidiaries related to social welfare foundations, which are believed to effectively serve as controlled affiliates throughout the family operation. The commission noted that this deceptive practice has been in place at least since 2010, emphasizing the need for accountability in corporate governance.

According to the KFTC, the foundation companies were used by Kim's family to arrange financial support, secure stakes, and defend management rights as needed. Notable instances of this manipulation include a 2021 transaction where Kim personally borrowed 22 billion won from a foundation company that had received a large sum from DB High-Tech through a real estate sale just prior. This transaction raised eyebrows, as KFTC officials expressed skepticism about such large loans made outside traditional financial institutions, reinforcing concerns about the integrity and transparency of financial practices within the conglomerate.

Additionally, in 2022, DB Inc. faced financial challenges necessitating the sale of a slight portion of its holdings in DB High-Tech. Strikingly, a related foundation acquired a similar percentage of shares in DB High-Tech, corroborating the commission's assertions regarding orchestrated maneuvers to uphold Kim's dominance over DB Group. This case not only underscores the importance of accurate disclosure within corporate structures but also highlights ongoing challenges in regulating the dominance of family-operated conglomerates in South Korea, which often engage in dubious practices to maintain their control at the expense of fairness in the marketplace.