In a landmark ruling that has sent shockwaves through South Korea’s business and legal communities, Chey Tae-won, the prominent tycoon and chairman of the SK Group conglomerate, has been ordered to pay his ex-wife a staggering 1.38 trillion won ($1 billion) in cash. This ruling marks the country’s largest-ever divorce settlement and follows a tumultuous saga that unfolded nearly a decade ago.
The story dates back to the unraveling of Chey’s marriage to Roh So-young, which crumbled amidst revelations of his extramarital affair and the birth of a child with his lover. After 35 years of marriage, the couple’s relationship reached its breaking point, leading to a protracted legal battle over the division of assets.
The recent ruling by the Seoul High Court has overturned previous judgments, awarding Ms. Roh a significant portion of Chey’s company shares, a decision vehemently contested by Chey’s legal team, who plan to appeal. They argue that the court has favored Roh’s account of events without considering Chey’s perspective.
The magnitude of the settlement is staggering, especially when compared to the initial 66.5 billion won settlement proposed by a lower court in 2022. The High Court’s decision to recognize Ms. Roh’s entitlement to a share of Chey’s SK Group shares is a pivotal development, underscoring the court’s view that marital assets should be shared.
The court justified its ruling by stating that Ms. Roh had contributed to the growth of the SK Group and Chey’s business endeavors during their marriage. It also cited her assistance in navigating regulatory challenges and her family’s protective influence on Chey’s business interests.
Furthermore, the court condemned Chey for his extramarital affair, emphasizing his lack of remorse and disregard for monogamy. This factor weighed heavily in the determination of the settlement, with the court acknowledging Ms. Roh’s suffering.
Despite Chey’s legal team arguing that Ms. Roh’s political connections were a disadvantage rather than an advantage to his business, the court upheld its decision, emphasizing the significant role played by Ms. Roh in the success of the SK Group.
The implications of this ruling extend beyond the personal lives of the individuals involved, as evidenced by the 9% surge in SK Inc shares following the announcement. As one of the world’s leading semiconductor manufacturers, SK Inc’s future trajectory may be influenced by the outcome of this high-profile divorce settlement.
As the legal battle continues to unfold, the case of Chey Tae-won and Roh So-young serves as a cautionary tale about the complexities of marriage, wealth, and power, highlighting the enduring impact of personal decisions on business empires.
