Chey Tae-Won’s Re-Appeal Strains SK Group Control
As SK Group Chairman Chey Tae-won has decided to re-appeal to the Supreme Court in dissatisfaction with the ruling of the remand trial for his divorce lawsuit against Art Center Nabi Director Roh Soh-yeong, attention from the business and financial sectors is focused on whether this legal response w
SK Group Chairman Chey Tae-won is planning to appeal his divorce lawsuit ruling to the Supreme Court, causing concern among business and financial sectors about the potential economic impact of the decision. An analysis by the Korea CXO Institute on July 17 determined that the economic gain or loss for Chairman Chey hinges on two key variables: the potential further reduction in the property division amount by the court and the level of SK Inc.'s stock price maintained.
Two years ago, the property division amount was 67.3% of Chey's SK Inc. stake, but this ratio has now dropped to 11.5% following a remand trial ruling. The Supreme Court's decision in May 2024 ordered Chey to pay 1.3808 trillion won to Roh Soh-yeong, which is 67% of the value of his SK Inc. shares at the time. However, following the remand trial in July, the property division amount was reduced to 944 billion won, a decrease of 436.8 billion won, or 31.6%.
The stock price of SK Inc. has since risen, alleviating Chey's property division burden. The Korea CXO Institute analyzed the economic impact of Chey's appeal in three areas: 1) the court's potential further reduction in the property division amount, 2) the resources available through cash-equivalent assets, and 3) the effect on corporate control.
If the property division amount is further reduced through the Supreme Court appeal, Chey could save a significant amount of money, but he would also need to raise additional funds in the range of 900 billion won.
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