The divorce trial between Chey Tae-won, chairman of SK Group, and Roh Soh-yeong, director of Art Center Nabi, has drawn significant attention not only for the record-breaking asset division of 1.38 trillion won but also because the court recognized the substantial role that Roh Soh-yeong’s father, former South Korean President Roh Tae-woo, played in SK’s growth. The court acknowledged that 30 billion won of slush funds from the late President had flowed into SK.
The court deemed all of Chey Tae-won’s assets, including SK shares, subject to division, valuing them at 4.01 trillion won and awarding 35% of that to Roh Soh-yeong. This results in her receiving 1.38 trillion won in divided assets and an additional 2 billion won in alimony, a significant increase from the first trial’s ruling of 66.5 billion won in assets and 100 million won in alimony.
Initially, the lower court ruled that the SK shares Chey Tae-won held were inherited from his late father, Chey Jong-hyun, and thus were not subject to division. However, the appellate court concluded that the increased value of inherited assets, including SK shares, should be divided, especially considering the 30-year marriage and the Roh family’s role in SK’s growth.
Roh Soh-yeong argued that her father’s slush funds were used in the 1990s for SK’s acquisitions and stock purchases, presenting photos of six promissory notes worth 5 billion won each as evidence. Chey Tae-won refuted these claims, stating that no slush funds had entered SK Group, a fact confirmed during Roh Tae-woo’s 1995 investigation.
However, the court found the evidence credible, noting a memo by Roh Tae-woo’s wife mentioning “Sunkyong (SK’s former name) 30 billion won” and the suspicious influx of funds during SK’s acquisition of Pacific Securities. The court ruled this money was separate from the 410 billion won slush funds acknowledged in Roh Tae-woo’s prior criminal trial, where he was convicted and fined 262.8 billion won.
A legal expert expressed skepticism over the ruling, finding it contradictory to recognize the slush funds as illegal yet still include them in the asset division. SK’s legal team also contested the court’s decision, stating no tangible evidence proved the influx of Roh Tae-woo’s slush funds or benefits from it.
The court also pointed to Chey Jong-hyun’s acquisitions of Pacific Securities and Korea Mobile Telecom, stating, “SK Group has succeeded by undertaking risky management practices, shielded by their family connection to Roh Tae-woo. There are indications of money laundering, yet no investigation into the source of these funds has been conducted by the tax authorities.”
In response, SK argued, “Korea Mobile Telecom was acquired during President Kim Young-sam’s administration. The court is unaware of the factual details. At that time, we were under pressure from the government to provide various resources, and we also offered substantial support to Roh Soh-yeong.”
A divorce lawyer commented, “The ruling is unreasonable because it acknowledges that asset growth resulted from collusion between business and government, yet it still considers the tainted assets as subject to division.”
