Now-SK Group Chairman Chey Tae-won, left, and then-fiance Roh Soh-yeong are seen in a file photo taken in September 1988 shortly before their marriage.JOONGANG ILBO
SK Group Chairman Chey Tae-won once again took his divorce ruling back to the Supreme Court to appeal the latest decision to pay his estranged wife, Roh Soh-yeong, 944 billion won ($666 million). The probability of shrinking the number is low, but onlookers speculate that stalling may indeed be his best option to buy himself time to secure the amount in cash — as ordered by the court.
The 66-year-old Chey appealed again on Friday against a July 24 ruling by an appellate court on remand ordering him to pay Roh 944 billion won in a property settlement.
“We submitted the appeal after careful consideration of various circumstances,” said Chey's representatives. “We will proceed with the upcoming process with the aim of minimizing any negative impact on shareholders and the group’s management.”
Legal observers say the chances of the Supreme Court overturning the ruling are low because the Supreme Court reviews whether the law was properly applied, rather than determining the veracity of specific facts.
“The case has returned to the Supreme Court after the appellate court reconsidered it in line with the Supreme Court’s reasoning when it remanded the case in October last year, so the chances of the ruling being overturned do not appear high,” a sitting senior judge said.
Still, Chey stands to gain some practical benefits from another appeal.
The appellate court on remand ordered him to pay the settlement in cash rather than shares. Chey would have to raise the cash by selling his personal stake in SK or increasing dividends from profitable subsidiaries such as SK Telecom, a process that could take considerable time. The appeal could therefore delay the date on which the ruling becomes final until Chey secures the necessary cash.
“Excluding the salaries and dividends paid by SK Group over the past 10 years, Chey would need to pay between 500 billion won and 600 billion won of the settlement amount, which he could cover by selling his SK shares or taking out loans secured by them,” said Oh Il-sun, head of the Korea CXO Institute, a market analyzer. “Still, he appears to need time to secure the cash.”
Chey Tae-won, left, chairman of SK, and his former wife Roh Soh-yeong attend a legal proceeding for their divorce trial at the Seoul High Court in Seocho District, southern Seoul, on June 15.YONHAP
Interest could also go down
Chey could also reduce the amount of interest he ultimately pays by delaying the date on which the ruling becomes final. A property settlement begins accruing 5 percent annual interest for delayed payment from the day after a ruling becomes final. On a settlement of 944 billion won, that amounts to about 129 million won for each day payment is delayed.
Legal observers predict that even if the Supreme Court declines to hear the appeal and dismisses it, Chey could gain roughly three months or more.
“Once the ruling becomes final, Roh will also have the authority to seek compulsory enforcement, which includes seizing Chey’s assets, so the appeal may also be intended to prevent that,” a divorce lawyer who requested anonymity said.
Now-SK Group Chairman Chey Tae-won, second from left, and then-wife Roh Soh-yeong, second from right, are seen during their wedding ceremony in 1988. Late-President Roh Tae-woo is seen far-right as a father to Roh Soh-yeong.JOONGANG ILBO
Roh Soh-yeong's contribution accepted
The Seoul High Court ruled on remand that Chey must pay Roh 944 billion won in cash. It divided the couple’s property two-thirds to Chey and one-third to Roh, giving Roh a larger share than legal observers had expected. The court also included SK shares among the assets subject to division.
The appellate court excluded 30 billion won in secret funds linked to Roh’s father, former President Roh Tae-woo, from calculating the division ratio, following the Supreme Court’s finding that the funds constituted performance for an illegal cause— money provided in connection with an illegal act — and therefore could not be considered part of Roh’s contribution to building the couple’s assets.
The appellate court, however, factored Roh’s domestic contributions and other efforts that it found had significantly contributed to SK’s growth into its calculation of the property division ratio.
“The court appears to have recognized even the tangible and intangible support Roh provided to Chey, including her father’s influence,” said Kang Hyeon-ji, a divorce lawyer at Sun-han Law Firm.
The appellate court also took into account a fivefold rise in SK’s share price during the property division proceedings, which worked in Roh’s favor in determining the amount she would receive. Under Supreme Court precedent, when the value of assets accumulated through a couple’s joint efforts changes sharply during property division proceedings after a divorce is finalized, the change may be reflected in calculating the settlement to ensure an equitable division of the assets.
BY JO SU-BIN, KIM SEONG-JIN, KIM YE-JEONG [yoon.soyeon@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
