Chey Tae-won: South Korean court strikes down $1bn payout in 'divorce of the century'
Key Takeaways
- The Supreme Court of South Korea overturned the record 1.38 trillion won divorce settlement for SK Group chief Chey Tae-won.
- The reversal was based on a finding that a 30 billion won slush fund, linked to the ex-wife's father (a former president), was improperly included in the couple's joint assets.
- The court upheld a separate 2 billion won alimony payment to ex-wife Roh So-young.
- The case, dubbed the "divorce of the century," has been sent back for review by the lower court.
- SK Group shares fell 5.4% following the ruling, though analysts do not expect an immediate corporate shake-up.
South Korea's Supreme Court has overturned a lower court's order requiring SK Group chairman Chey Tae-won to pay his ex-wife, Roh So-young, a record-breaking 1.38 trillion won divorce settlement. The high court mandated a review of the case, citing a miscalculation that improperly increased the value of the couple's joint assets, specifically concerning a 30 billion won slush fund linked to Ms. Roh's father, former President Roh Tae-woo. The Supreme Court ruled that the fund, suspected to have originated from illegal bribes, could not be considered a contribution to the marital property, a point celebrated by Mr. Chey's legal team. However, the court did affirm a separate 2 billion won alimony payment to Ms. Roh. The initial ruling had been the largest divorce settlement in South Korean history, gripping the nation due to Mr. Chey's leadership of the powerful SK conglomerate and Ms. Roh's presidential lineage. Following the Thursday ruling, SK shares dropped 5.4%, though analysts do not foresee an immediate leadership shake-up as Mr. Chey is not immediately forced to liquidate assets for the settlement.
