South Korean billionaire and Chairman of the SK Group conglomerate, Chey Tae-won, has been ordered to pay his ex-wife, Roh So-young, a record-breaking 1.38 trillion won, $1 billion, in cash as part of their divorce settlement.
This ruling, reported by the BBC, marks the largest divorce settlement in South Korea’s history.
The divorce proceedings, which have spanned nearly a decade, began after Chey Tae-won’s extramarital affair came to light, including the birth of a child with his mistress.
On Thursday, the Seoul High Court ruled in favor of Roh So-young, granting her a significant share of Chey’s company assets after their 35-year marriage.
Roh So-young, the daughter of former South Korean President Roh Tae-woo, was initially awarded a much smaller settlement of 66.5 billion won by a lower court in 2022. However, the Seoul High Court’s recent decision drastically increased this amount.
The court also overturned a previous family court ruling that had denied Roh So-young a portion of Chey Tae-won’s SK shares, now recognizing these shares as joint assets and awarding her a portion.
Chey Tae-won’s legal team has announced their intention to appeal the decision, arguing that the ruling was unfairly based on Roh So-young’s account of events.
The ruling said, “It was reasonable to rule that, as his wife, Roh played a role in increasing the value of SK Group and Chey’s business activity.”
The court’s estimation of Chey Tae-won’s wealth at around 4 trillion won means that Roh So-young, with whom he shares three children, is entitled to approximately 35% of that amount as part of the divorce settlement.
The court’s decision to award Roh So-young a substantial settlement was based on several factors, including her contributions to Chey Tae-won’s business and the influential support provided by her father, former President Roh Tae-woo, which helped SK Group resolve regulatory issues and succeed under Chey Jong-hyon’s leadership.
The court also noted Chey Tae-won’s lack of remorse for his actions and disregard for monogamy.
Roh So-young’s emotional pain and distress resulting from Chey Tae-won’s infidelity were considered in determining the settlement amount.
Despite Chey’s legal team arguing that Roh So-young’s political connections had hindered rather than helped his business, the court ruled in her favor.
Following the ruling, shares of SK Inc., a global semiconductor giant with interests in telecoms, chemicals, and energy, surged by 9%, reflecting investor confidence in the company’s future stability despite the high-profile divorce settlement.
