SK Group Faces Uncertainty as Chairman Ordered to Pay $680 Million in Divorce Settlement

South Korean conglomerate SK Group is grappling with significant financial and governance challenges following a court ruling ordering Chairman Chey Tae-won to pay 944 billion won to his former wife, Roh Soh-young, in a divorce settlement. The amount far surpasses initial expectations, which ranged from 66.5 billion won in the first trial to 1.38 trillion won in the second.

The ruling has sent ripples through the business community, with speculation mounting about how Chey will secure the substantial funds. Potential measures include selling off a portion of his stake in SK Inc., the group's holding company, or divesting from its subsidiary Siltron, a semiconductor materials manufacturer. Such a move could have far-reaching implications for the group's intricate ownership structure, which relies on Chey's control over SK Inc. to manage its vast network of affiliates, including SK Telecom and SK Hynix.

Chey holds a 17.9% stake in SK Inc., with his total ownership, including that of related parties, around 25%. Maintaining this shareholding is crucial for the stability of SK's governance. The court's decision not only presents a personal financial hurdle for Chey but also introduces a layer of governance risk for the entire SK Group, highlighting the ongoing complexities surrounding its leadership and control.