South Korean court orders SK Group chairman to pay ex-wife $645 million in divorce settlement

A Seoul High Court ruled on Friday that Chey Tae-won, chairman of the SK Group, must pay his ex-wife Roh Soh-yeong 944 billion won (about $645 million) in a divorce settlement, the largest such award in South Korean history. The court required the payment in cash rather than a transfer of shares, citing the importance of Chey’s holdings for maintaining control of the conglomerate.

Chey, who holds a 17.9% stake in SK Inc. and has an estimated net worth of $5.4 billion, may need to sell assets, borrow funds or pledge shares as collateral to meet the judgment. Analysts said the payout is unlikely to jeopardise his control of the group, but it has heightened investor scrutiny of his financial position.

Shares of SK Inc. fell 3.8% and SK Hynix dropped 8.3% in Seoul trading after the ruling. The judges awarded Roh one-third of the couple’s marital property, finding that she contributed to preserving and growing the family’s wealth during the marriage. The decision follows a Supreme Court ruling that excluded alleged financial support from Roh’s father, former President Roh Tae-woo, from the asset calculation.

Both parties retain the right to appeal the judgment, which could send the dispute back to the Supreme Court.