SK Group Chairman Chey Tae-won Faces Record 1.3 Trillion Won Divorce Settlement
The recent ruling ordering SK Group Chairman Chey Tae-won to pay his ex-wife a staggering 1.38 trillion won ($1 billion) in a divorce settlement has sparked widespread interest in how this will impact his ownership within the conglomerate. The Seoul High Court’s decision has raised questions about how Chey will raise the cash required for the settlement and what implications this could have on the shareholding structure of SK Group, the nation’s second-largest conglomerate.
Chey has been instructed to pay 1.38 trillion won in property division and an additional 2 billion won in one-off alimony to his estranged wife, Roh Soh-yeong. This divorce settlement stands as the largest in South Korean history and has shed light on the complex nature of dividing SK shares held by Chey, with the court ruling that he must pay in cash.
In response to the ruling, Chey’s legal team has announced plans to appeal to the Supreme Court, a process that could take several years. While this may buy him some time to secure the necessary funds, the delayed payment would also incur interest. As the largest shareholder of SK Inc., the conglomerate’s holding company overseeing key affiliates such as SK Innovation and SK Telecom, Chey’s ownership is under scrutiny.
Industry experts speculate that Chey is unlikely to part ways with shares in SK’s key affiliates, drawing parallels to his previous proxy battle against Sovereign Asset Management in the early 2000s. The possibility of securing a loan has been raised, but with Chey having already used a significant portion of his SK Inc. shares as collateral, selling stakes in other SK companies like SK Siltron may become unavoidable.
The aftermath of the divorce settlement has had an immediate impact on SK Inc.’s stock, with shares experiencing significant growth as market expectations shift towards increased shareholder benefits, including higher dividends. Roh, on the other hand, has expressed her intention to maintain her distance from SK Group’s management, emphasizing that her shares will remain within the framework of SK’s ownership structure.
As the saga unfolds, the focus remains on how Chey will navigate the financial implications of the divorce settlement while preserving his ownership within SK Group, a conglomerate deeply intertwined with South Korea’s business landscape.