How will Chey’s W1.3tr divorce settlement affect SK’s shareholding structure?


The recent high-profile divorce settlement ruling has mandated SK Group Chairman Chey Tae-won to pay his ex-wife a record 1.38 trillion won ($1 billion), sparking speculation about how he will raise the funds and the potential impact on the conglomerate's shareholding structure. The Seoul High Court's decision also encompasses a 2 billion won one-off alimony payment, marking the largest divorce settlement in South Korean history. The court's order for Chey to pay in cash and its impact on the ownership of SK shares - critical for maintaining management control over SK Group affiliates - has underscored the complexity of the situation. Chey, who holds a 17.73 percent stake in SK Inc., may need to leverage his stock value or consider selling shares in other SK affiliates to generate the required funds, according to industry experts. Even if he chooses to sell off his unlisted 29.4 percent stake in SK Siltron, valued at 260 billion won, it may still be insufficient to cover the substantial financial commitment. Despite the market's anticipation of potential management control concerns following the ruling, Roh, Chey's ex-wife, has indicated that she does not seek to assume control of the company's management. Meanwhile, SK Group has not released a public statement regarding the court ruling, but Chey's legal team has expressed discontent and intends to file an appeal with the Supreme Court.


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