SK Chairman's Divorce Settlement Hinges on Court-Set Date

The protracted divorce proceedings between SK Group Chairman Chey Tae-won and Noh So-young have reached a pivotal stage, with the Seoul High Court determining the asset division based on the stock value as of April 16, 2024. This ruling marks the latest turn in a legal battle that has seen dramatic shifts since its inception in 2017.

Initially, the first court ruled in favor of Chey, excluding SK Inc. shares from the division of assets, deeming them his separate property inherited from his father. The settlement was set at 66.5 billion Korean won. However, an appellate court drastically overturned this decision in 2024, classifying the shares as marital property and ordering a division that valued assets at approximately 1.38 trillion won. This ruling was partly based on arguments involving alleged slush funds from Noh's father, former President Roh Tae-woo.

The Supreme Court subsequently sent the case back for retrial, ruling that any funds derived from illicit activities could not be considered as contributions to marital assets. This sent the case back to the Seoul High Court for a retrial.

The latest judgment established a division ratio of two-thirds for Chey Tae-won and one-third for Noh So-young, resulting in a settlement of approximately 944 billion won. Crucially, the court's decision to use April 16, 2024, as the valuation date for SK Inc. shares, which closed at 160,000 won on that day, was a significant factor. The value of Chey's stake in SK Inc. had risen substantially by the date of the final hearing, a factor that influenced the final settlement figure.

The court ordered the settlement to be paid in cash rather than through a division of the shares themselves, aiming to maintain the corporate governance structure of SK Group. While the specific date favors Chey Tae-won due to the stock's valuation, the overall division and payment method represent a compromise. Both parties have the option to appeal again before the ruling becomes final.