SK Group Chairman Chey Tae-won was ordered to pay 1.38 trillion won ($1 billion) to his estranged wife, Roh So-young, in South Korea’s largest-ever divorce settlement. Investors are now focused on how Chey will raise the necessary funds. Although the Supreme Court’s decision is still pending, if the ruling is finalized, Chey could be compelled to liquidate some of his assets, currently valued at approximately 2 trillion won.
The Seoul High Court ruled on May 30 that Chey must pay 1.38 trillion won in property division and 2 billion won in alimony to Roh, Director of Art Center Nabi, in a property division settlement. The appellate court acknowledged that Chey’s marriage to Roh contributed to the increase of SK’s value. The ruling partially accepted Roh’s claim that SK Group used the late former President Roh Tae-woo’s slush funds, worth 30 billion won, to acquire Pacific Securities - now SK Securities - in 1992.
As of the ruling day, Chey’s stake in SK Group was valued at approximately 2.05 trillion won. He holds a 17.73% stake in SK (valued at 2.05 trillion won), 0.12% in SK Discovery (930 million won), 3.11% in SK Discovery preferred stock (1.367 billion won), 3.21% in SK Chemicals preferred stock (1.794 billion won), 303 shares of SK Telecom (15 million won), and 196 shares of SK Square (15 million won).
Industry insiders expect Chey to appeal the case to the Supreme Court and secure the dividends until the decision is made rather than sell his shares immediately. “Chey will likely take the case to the Supreme Court, which could take another two to three years,” said Park Joo-geun, CEO of Leaders Index, a research firm. “There are also options such as securing dividends or taking out loans using the shares as collateral, so he still has time to consider his options.”
From 2022 to 2023, Chey reportedly received dividends worth around 200 billion won from SK affiliates. There is also the possibility of listing and selling SK Siltron, in which Chey holds a stake. He acquired a 29.4% stake when SK acquired Siltron from LG in 2017. At the time of acquisition, the stake was valued at approximately 260 billion won, but its current value is estimated to have increased significantly.
Some speculate that Roh does not wish to see SK Group’s management rights destabilized. “What I asked for was a division of property, not a division of the company,” Roh told reporters shortly after the first court ruling. “If I receive a fair division of SK shares from the higher court, I intend to help SK develop and grow further.”
“Chey will try to minimize the sale of his stake in the holding company, SK Corporation, to protect his control over the group,” said an industry insider. “However, this ruling is unfavorable for him in defending his control over the company, as taking out loans secured by shares involves interest burdens, and selling shares comes with tax issues.”
