SEOUL, SOUTH KOREA – South Korean billionaire Chey Tae-won has been faced with a historic divorce settlement, as ordered by the Seoul High Court. His ex-wife, Roh So-young, is set to receive a staggering 1.38 trillion won ($1bn; £788m) in cash as part of the settlement – marking it as the largest divorce settlement in the country’s history.
The ruling comes after nearly a decade since Chey’s marriage crumbled due to the revelation of his extramarital affair and fathering a child with his lover. The court decided that Roh, who had been married to Chey for 35 years, is entitled to a portion of his company shares. This decision has sparked controversy as Chey, who chairs the powerful SK Group conglomerate, plans to appeal the ruling.
Initially, a lower court had awarded Roh a much smaller settlement of 66.5 billion won in 2022, rejecting her request for a stake in Chey’s SK Group shares. However, the High Court’s recent ruling overturned this decision, recognizing the shares as joint property in the marriage.
In its verdict, the court highlighted Roh’s contribution to the growth of SK Group and Chey’s business activities, stating that it was reasonable to acknowledge her role as his wife in enhancing the company’s value. With Chey’s wealth estimated at around 4 trillion won, Roh is expected to claim approximately 35% of his assets.
Additionally, the court noted Roh’s assistance in navigating regulatory challenges for Chey’s businesses and highlighted the protective influence of her father, former South Korean President Roh Tae-woo, on Chey’s business endeavors. The court criticized Chey for his lack of remorse regarding his misconduct during the trial and emphasized the impact of his affair on Roh’s well-being in the new settlement.
Despite Chey’s legal team arguing that Roh’s political connections had not benefited his business, the market reacted positively to the ruling, with SK Inc shares experiencing a 9% increase following the announcement. The case has brought attention to issues of marriage, wealth distribution, and corporate governance in South Korea’s business landscape.