SK Chairman Chey Tae-won Ordered to Pay $670 Million in Property Division to Estranged Wife

In a significant development in a high-profile divorce case, a South Korean court has ordered SK Group Chairman Chey Tae-won to pay 944 billion won (approximately $670 million) in property division to his estranged wife, Roh Soh-yeong. The Seoul High Court's Family Division ruled on July 24 that Roh's contributions to the formation and increase in value of Chey's SK shares during their marriage were substantial.

The court specifically acknowledged Roh's role in household management, child-rearing, and her external activities related to the SK Group. These contributions were deemed to have played a part in the significant growth of the company's stock value during their union. The court set the valuation of the divisible assets, including Chey's SK shares, based on the closing date of the factual심 (fact-finding trial) in the divorce proceedings.

Chey and Roh married in September 1988. The divorce proceedings became public in 2015 when Chey revealed he had a child outside of his marriage. A divorce mediation attempt in 2017 failed, leading Chey to file for divorce in 2018. Roh countersued in December 2019.

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The shares held by Chairman Chey were acquired in his name during the marriage, and it is recognized that both Roh and Chey contributed to their formation and increase in value.

Initial rulings varied significantly. In December 2022, a lower court ordered Chey to pay 100 million won in alimony and 66.5 billion won in property division. An appellate court in May 2024 increased the alimony to 2 billion won and the property division to 1.38 trillion won. However, the Supreme Court partially overturned the appellate ruling in October last year, stating that 30 billion won from former President Roh Tae-woo's alleged slush fund, which Roh Soh-yeong claimed was funneled into SK, was illegal and thus not subject to division. The case was sent back to the Seoul High Court for retrial on the property division aspect, while the 2 billion won alimony was finalized.

The key issue in the retrial was whether Chey's SK shares should be included in the divisible property and the specific date for valuing those shares. The share price fluctuated dramatically, with the stock valued at around 160,000 won per share at the close of the appellate trial versus 810,000 won per share at the close of the retrial, leading to a more than five-fold difference in the potential division amount.

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The growth in value of the company shares during Chairman Chey's management activities in the marriage period was significant, and Roh's household and child-rearing, as well as her external activities for the SK Group, contributed to this.