A South Korean appellate court ordered SK Group Chairman Chey Tae-won on Friday to pay his former wife, Roh Soh-yeong, 944 billion won ($644 million) in cash in a historic divorce settlement. The Seoul High Court ruled that Chey’s equity holdings in SK Inc. constitute joint marital property, marking the largest divorce payout in South Korean legal history.
Background of the Corporate Marriage
Chey Tae-won, who leads South Korea’s second-largest conglomerate, married Roh Soh-yeong in 1988 at the Blue House during the presidency of her father, former South Korean President Roh Tae-woo. The high-profile union linked political leadership with one of the nation’s rising corporate powers during a period of rapid industrial growth.
The relationship publicly dissolved in 2015 when Chey revealed he had fathered a child outside of marriage. Legal proceedings commenced shortly thereafter, leading to years of complex court battles over asset valuation and ownership rights.
In 2022, a lower family court awarded Roh 66 billion won alongside alimony. However, that court ruled Chey’s SK Group stock was personal property exempt from division, leading both parties to file appeals.
Appeals Court Decision and Asset Reclassification
The Seoul High Court overturned the lower ruling regarding the classification of Chey’s corporate holdings. The panel of judges concluded that Roh directly contributed to the expansion and preservation of SK Group’s enterprise value during their 35-year marriage.
Court records cited political backing and structural assistance linked to former President Roh Tae-woo during SK Group’s pivotal expansion into telecommunications and energy in the 1990s. The court determined that these historical factors provided a foundation for the conglomerate’s modern success.
By recognizing Chey’s stock as divisible marital wealth, the appellate court increased the property settlement to 944 billion won in liquid cash. The court also raised the alimony payment owed to Roh from 100 million won to 2 billion won ($1.5 million).
Market Reactions and Corporate Governance Impact
The decision prompted immediate volatility in the equity markets, with SK Inc. shares rising sharply following the news. Investors speculated that Chey might be forced to sell shares or increase dividend payouts to raise the necessary cash.
Governance experts view the decision as a landmark precedent for South Korea’s family-controlled business groups, known as chaebols. The ruling establishes that non-corporate spouses can claim legal credit for equity appreciation within family dynasties.
Legal analysts highlight that Chey currently holds a 17.73 percent controlling stake in SK Inc., valued at approximately 2 trillion won. Raising over $600 million in cash without relinquishing corporate control presents a severe liquidity challenge for the chairman.
Implications for SK Group and Chaebol Ownership
Chey Tae-won’s legal team expressed strong objection to the decision, indicating plans to submit an appeal to South Korea’s Supreme Court. Counsel argued that the court overreached in attributing corporate growth to political ties from decades past.
Financial analysts are watching whether Chey will secure loans using his equity as collateral or execute secondary share offerings to meet the financial obligation. The pending Supreme Court review will ultimately determine whether this historic ruling permanently changes how marital assets and corporate control are evaluated in South Korea.
