South Korean court orders SK chairman Chey to pay US$644 million to ex-wife in divorce ruling

A South Korean court has ordered SK Group chairman Chey Tae-won to pay US$644 million to his ex-wife, Roh Soh-yeong, in a significantly reduced divorce settlement. The Seoul High Court's decision on Friday marks a reduction from a previous order of US$940 million, after the Supreme Court sent the case back for reconsideration.

The acrimonious legal battle has centered on the division of marital assets, particularly Chey's substantial shareholdings in SK Group, a conglomerate that includes the world-leading memory chipmaker SK hynix. The court ruled that Roh is entitled to a cash payout equivalent to one-third of the couple's marital assets, acknowledging her contributions to the family and the SK Group's growth during their marriage.

Friday's ruling stated that Chey's shareholdings increased substantially during the marriage through his management activities, and Roh contributed through homemaking, childcare, and public-facing roles. This decision comes after the Supreme Court previously quashed an argument that a 30 billion won slush fund used by Roh's father, former president Roh Tae-woo, should be counted as her contribution, deeming it likely stemmed from illegal bribes.

The settlement is not yet final, as either party can refer it back to the Supreme Court. Chey, 65, and Roh, 65, married in 1988 and have reportedly lived apart for over 15 years. Chey publicly disclosed an extramarital affair in 2015, admitting to fathering a child with another woman. SK hynix's crucial role in supplying chips to AI companies like Nvidia has seen Chey's stake grow significantly in value.

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The defendant's shareholdings increased substantially during the marriage through his management activities. The plaintiff contributed to that increase through homemaking, childcare and public-facing activities related to SK Group.