SK Group’s headquarters, the “SK Seorin Building,” located in Seorin-dong, Jongno District, Seoul. (Image courtesy of SK Group)
SEOUL, Oct. 14 (Korea Bizwire) — South Korea’s Supreme Court is set to rule Thursday on the long-running divorce case between SK Group Chairman Chey Tae-won and Noh So-young, director of Art Center Nabi, in what has been called the “trial of the century.”
With more than 1 trillion won (about $720 million) in assets at stake, the decision could reshape ownership dynamics at one of the country’s largest conglomerates.
The case centers on a 2023 appellate court ruling ordering Chey to pay Noh 20 billion won in alimony and an additional 1.38 trillion won in asset division, including part of his holdings in SK Inc., the group’s holding company.
The court found that the value of Chey’s stake in SK had risen with help from Noh and her late father, former President Roh Tae-woo. The verdict stunned observers, as the first trial court had set the total payout at 666 billion won, mostly in cash.
If the Supreme Court sends the case back to the appeals court for retrial, citing misapplied legal principles, Chey’s financial burden could be reduced. Hanwha Investment & Securities said in a recent note that such a ruling could ease concerns over SK Inc.’s share price volatility and help stabilize management control.
Noh So-young, director of Art Center Nabi, and SK Group Chairman Chey Tae-won arrive at the Seoul High Court on April 16, 2024, to attend an appellate hearing in their divorce case. (Yonhap)
But if the high court upholds the 2023 ruling, Chey would need to raise more than 1.38 trillion won in cash—likely by selling shares or assets. Most of his wealth is tied up in SK affiliates, particularly SK Inc., where his 17.9 percent stake is worth 2.88 trillion won ($2.1 billion) as of Friday’s closing price.
However, his combined ownership with related parties stands at just 25.46 percent, and over half of his stake has already been pledged as loan collateral. Any major sale could weaken his grip on the conglomerate.
SK Siltron, the group’s semiconductor wafer subsidiary, is another potential source of liquidity. Chey indirectly holds a 29.4 percent stake through a total return swap (TRS) deal with financial institutions—a de facto stock-backed loan.
Meanwhile, SK Inc., which owns the remaining 70.6 percent, is reportedly seeking to sell the company, with Doosan Corp. seen as a leading bidder. SK estimates Siltron’s enterprise value at around 5 trillion won, suggesting that Chey’s stake could yield more than 600 billion won if included in the sale, though his portion is not part of the current deal discussions.
Despite the uncertainty, SK Inc.’s shares rose 1.37 percent to close at 222,000 won on Monday, suggesting that investors see limited immediate risk to Chey’s control even as the most consequential corporate divorce in Korean history nears its conclusion.
M. H. Lee (mhlee@koreabizwire.com)
