Post by : Saif Rahman

South Korean court has ordered SK Group Chairman Chey Tae-won to pay 944 billion won (about $640 million) to his former wife, Roh Soh-yeong, in one of the country's largest divorce settlements.

The ruling marks a record cash award in South Korea, although it is lower than the 1.38 trillion won settlement ordered by an appeals court in 2024.

Court Rules on Property Division

The Seoul High Court said Chey's holdings in SK Inc., the group's holding company, remain subject to division because they were acquired during the marriage and increased in value through the contributions of both spouses.

The court set the property division ratio at two-thirds for Chey and one-third for Roh. It also ruled that Chey will retain ownership of his shares and make the settlement through a cash payment, rather than transferring stock.

Market Reacts to the Decision

Following the ruling, SK Inc. shares fell 3.8%, while SK Hynix shares dropped 8.3% in Seoul trading.

Analysts said Chey may need to raise funds by selling shares, borrowing against assets or pledging stock. However, they do not expect the ruling to affect his control of the SK Group.

Read more: Justice Murdu Fernando’s Farewell from Supreme Court Bench

Background of the Case

The Supreme Court had earlier overturned part of a lower court's decision, ruling that alleged financial support from Roh's father, former South Korean President Roh Tae-woo, should not be considered in calculating the asset division.

The divorce itself and damages of 2 billion won had already been finalised.

Lawyers representing Chey said they would review the ruling before deciding whether to appeal.

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