Seoul: The Supreme Court on Thursday overturned a lower court’s decision requiring SK Group Chairman Chey Tae-won to pay approximately 1.4 trillion won (US$986 million) in property division to his estranged wife. This ruling provides some relief for Chey in what has been described as South Korea’s largest divorce settlement case.
According to Yonhap News Agency, the top court has sent the case back to the appellate court due to issues concerning the division of property between Chey, who leads South Korea’s second-largest conglomerate, and his estranged wife, Roh Soh-yeong. The Seoul High Court had previously ordered Chey to pay 1.38 trillion won in property division, in addition to 2 billion won in alimony to Roh, who is the daughter of former President Roh Tae-woo.
The lower court’s decision had factored in a purported slush fund of 30 billion won, allegedly funneled from the former president to Chey’s father. The Supreme Court, however, ruled that this fund should not be considered in the case as it appeared to be illegally formed through bribes. Meanwhile, the top court upheld the 2 billion won alimony for Roh, finding no issues with the amount.
A legal representative for Chey expressed respect for the Supreme Court’s ruling, highlighting relief over the correction of errors in the appellate court’s decision, including misinterpretations of the law and misunderstandings of facts.
Chey, who is set to attend a global business leaders meeting in the United States, declined to comment on the ruling. He stated his intention to contribute to the economy amidst challenges like hefty tariffs imposed by the U.S. administration under President Donald Trump. At the meeting in Mar-a-Lago, Florida, Chey plans to discuss a massive artificial intelligence infrastructure project, known as the Stargate project, with industry leaders such as SoftBank Group Chairman Masayoshi Son and Samsung Electronics Co. Chairman Lee Jae-yong.
The divorce case dates back to 2015, when Chey announced his divorce plan, admitting to an extramarital affair and having a child with his lover. Chey filed for a divorce settlement two years later, leading to a countersuit from Roh in 2019, demanding around half of the SK shares owned by Chey.
In December 2022, the Seoul Family Court ordered Chey to pay 100 million won in alimony and 66.5 billion won in cash as part of the property division. The appellate court later determined the couple’s combined wealth to be 4 trillion won, allocating 65 percent to Chey and 35 percent to Roh. Chey appealed this ruling, citing errors in assessing Roh’s contribution to the company’s growth.
Following the Supreme Court’s decision, uncertainties have resurfaced over the prolonged divorce settlement case, impacting SK Group’s affiliates’ share prices. As of 1:30 p.m., SK Inc. shares were trading at 216,000 won, a 6.7 percent decrease from the previous session.