[News Space=Reporter seungwon lee] Driven by expanded sales of medium and heavy-duty tractors in North America, TYM significantly boosted profitability in the first half of this year and increased its interim dividend. However, concerns are being raised that it is unclear whether the improved performance will immediately lead to the restoration of trust in the corporate governance structure, as risks surrounding the three siblings of the owner family overlap, including the confirmed criminal conviction of Vice President Kim Shik, the administrative lawsuit regarding accounting sanctions against CEO Kim So-won, and the criminal and civil dispute history of former Vice President Kim Tae-sik.

North America led and the dividends pushed

TYM, a company specializing in agricultural machinery, recorded consolidated sales of 552.2 billion won, an operating profit of 62.6 billion won, and a net profit of 56.7 billion won in the first half of 2026. Compared to the same period last year, sales increased by 13.1%, operating profit by 59.1%, and net profit by 148.0%. The operating profit margin was recorded at 11.3%, and the net profit margin at 10.3%. The company attributed the improved performance to expanded sales of medium and heavy-duty tractors in the North American market and strengthened competitiveness in its dealer network, parts, and services.

In particular, net profit increased by 33.8 billion won from 22.9 billion won in the first half of last year to 56.7 billion won this year. Given the structure where the increase in profit is much greater than the growth in sales, it is possible to assess that the recovery of profitability, rather than simple external growth, is the key to this half-year's performance.

TYM has channeled its improved performance into shareholder returns. On August 12, the Board of Directors resolved to pay an interim cash dividend of 120 won per common share. The total dividend amount is 4,783,325,160 won, and the dividend applies to 39,861,043 shares, excluding 1,538,957 treasury shares. This is 2.4 times higher than last year's interim dividend of 50 won per share, and the disclosed dividend yield is 1.8%.

Accounting sanctions and CEO lawsuit

On the other side of the performance lies issues regarding accounting treatment and internal control. The Securities and Futures Commission under the Financial Services Commission determined that TYM recognized revenue and cost of goods sold during the second to fourth quarters of 2022 even though control of some agricultural machinery had not been fully transferred, and decided on sanctions including fines, the designation of an auditor, and a recommendation for the dismissal of the responsible executive. According to reports at the time, the total fine amounted to 1.125 billion won, and the auditor designation period was three years.

CEO Kim So-won was included in the recommendation for dismissal as the executive in charge of finance and accounting within the Management Support and Strategy Division at the time. As the eldest daughter of Chairman Kim Hee-yong, she served as an internal director and Chief Strategy Officer (CSO) at TYM and was classified as a member of the owner family holding a major stake, following Vice President Kim Shik and former Vice President Kim Tae-sik, based on 2025 disclosures. CEO Kim So-won's shareholding at the time was reported to be 1,845,978 shares, or 4.10%.

TYM filed an application for a stay of execution and an administrative lawsuit in defiance of the Securities and Futures Commission's recommendation to dismiss the executive in charge, and the court granted the application for a stay of execution. Subsequently, CSO Kim So-won was appointed as CEO and took the lead in management. However, the stay of execution is a judgment that provisionally suspends the effect of the disposition, not the final conclusion of the main lawsuit. Therefore, the final outcome of the administrative lawsuit and whether the company's accounting and control systems have been supplemented remain key subjects for verification regarding management credibility.

This issue goes beyond the mere matter of an individual executive retaining their position. Sanctions on accounting practices by listed companies are linked to the reliability of financial statements, audit systems, the board's oversight function, and the effectiveness of holding those responsible accountable. Particularly in a structure where both the CEO and the largest shareholder are third-generation owners, the market's primary focus is inevitably on whether the board can independently inspect and rectify internal control issues.

Major shareholder legal risk

Vice President Kim Shik has been the largest shareholder of TYM since the end of 2022. The 2026 business report on the Korea Exchange's listing disclosure system states that the largest shareholder changed from Chairman Kim Hee-yong to Vice President Kim Shik on December 27, 2022.

According to the shareholding status in 2025, Vice President Kim Shik held 9,145,350 shares of TYM, representing a 20.30% stake, and held the position of the largest shareholder. As of August 2026, the combined shareholding of Vice President Kim Shik and related parties was disclosed as 12,708,429 shares, or 30.69% of the total issued shares of 41.4 million. In other words, given that Vice President Kim stands at the center of management control and corporate governance, there is a possibility that his personal criminal risks could escalate into issues concerning the company's reputation and shareholder rights.

Vice President Kim was tried on charges of purchasing and using liquid marijuana and new types of drugs from May 2022 to February 2023, and was sentenced to one year in prison suspended for two years in October 2023, which was finalized. 

However, the case involving drug-impaired driving needs to be examined separately. Vice President Kim was indicted on charges of causing two traffic accidents in the Gangnam area of ​​Seoul while under the influence of psychotropic drugs prescribed by a hospital, but the Seoul Central District Court acquitted him in the first trial on November 26, 2025. The court determined that it was difficult to conclude that he was in a state where normal driving was impaired due to the influence of the drugs, taking into account the time between the time of ingestion and the occurrence of the accidents, as well as the testimony of his attending physician. As it has been reported that the second trial is currently underway following the prosecution's appeal, it is difficult to conclude that the acquittal in the first trial has been finalized.

The traces left by the eldest son's case as well

Former Vice President Kim Tae-sik, the eldest son, also had his name added to criminal and civil cases. Kim was tried on charges of distributing obscene material under the Information and Communications Network Act for making obscene remarks targeting a specific woman in a group chat, but was acquitted in the appellate trial in April 2024. While the court noted that the expressions were inappropriate and could cause offense to the victim, it ruled that they did not meet the constituent elements of the crime of distributing obscene material, which is subject to criminal punishment.

However, not all related cases ended in acquittal. In a separate insult case, the court sentenced former Vice President Kim to a fine of 2 million won, and in the first trial of a civil lawsuit for damages, a ruling was issued in favor of the plaintiff in part, ordering him to pay 3 million won in consolation money to the victim. It is reported that the appeal process for the civil case is currently underway.

Ultimately, from a corporate governance perspective, the very fact that all three siblings are involved in criminal, civil, and administrative issues can place a burden on the vetting of board candidates, the legitimacy of management succession, and external credibility. In particular, given the current structure where Vice President Kim Shik serves as the largest shareholder and CEO Kim So-won as the representative director, it is difficult to analyze that the personal cases of the owners are merely private issues unrelated to the company's decision-making and oversight systems.

Questions that numbers cannot cover

TYM's earnings rebound is evident. The operating profit of 62.6 billion won and net profit of 56.7 billion won in the first half of the year demonstrate that the recovery in North American sales, improved product mix, and strengthened sales and service competitiveness have led to profitability. The increase in the interim dividend to 120 won per share and the emphasis on a shareholder return policy, including the use of treasury stock, are also positive signals for shareholders.

However, the corporate value assessed by the capital market is not formed solely by quarterly earnings. The conclusion of the substantive lawsuit regarding accounting sanctions, the specificity of internal control improvements, the progress of trials related to the major shareholder's criminal risks, the independence of the board of directors in the succession structure, and the qualification verification standards for key executives must all be verified together.

It has been pointed out that TYM has not established a separate policy to restrict the appointment of executives who are responsible for damaging corporate value or infringing upon shareholder rights. Regardless of legal obligations, this raises the question of what criteria a listed company, where owner family risks have been repeatedly raised, should use to vet its management and explain this to shareholders.

Corporate financial analysis and capital market experts pointed out, "TYM needs to specifically disclose the issues of the administrative lawsuit regarding CEO Kim So-won, the status of internal control improvements, the role, authority, and scope of management involvement of Vice President Kim Shik, the independence of the board of directors and the executive qualification review system, and the principles of succession and protection of shareholder rights." They added, "For a performance rebound confirmed by numbers to lead to a sustainable increase in corporate value, explanations based on principles and procedures, rather than silence regarding owner risk, must come first."

An official from TYM's PR agency, Welcome Associates, did not release any statement regarding this.