Arya News - The Seoul High Court on Friday ordered Chey to pay $685 million (944 billion won) to his former wife Roh Soh-yeong in the country`s largest-ever divorce settlement, ending a years long legal battle.
SEOUL – SK Group Chairman Chey Tae-won’s nearly 1 trillion won ($685 million) divorce case has shifted investor attention to SK Group shares as markets assess how he will finance the record settlement while maintaining his grip on the energy-to-chip conglomerate.
The Seoul High Court on Friday ordered Chey to pay 944 billion won to his former wife Roh Soh-yeong in the country’s largest-ever divorce settlement, ending a yearslong legal battle.
With the order stating the settlement to be paid in cash rather than through the transfer of shares, Chey’s control of the group has not been directly affected. But securing nearly 1 trillion won to fund the settlement remains a financial burden, fueling speculation over his shareholdings.
Although Chey owns a 17.9 percent stake in SK Inc., the group’s holding company, market watchers believe he is unlikely to sell down his stake, as it underpins his control of SK Group. His holding is currently valued at about 8.52 trillion won.
SK Inc. sits atop the group’s ownership structure with a 32.21 percent stake in SK Square, the intermediate holding company, which in turn owns a 20.5 percent stake in flagship chipmaker SK hynix.
Instead, market analysts widely expect Chey to rely on a combination of share-backed loans, higher dividend income and monetization of unlisted assets.
Expanding share-backed borrowing is viewed as the most likely option. Chey has already used stock-backed loans in the past, and the sharp rise in SK Inc.’s share price has significantly increased his borrowing capacity by boosting the value of his collateral.
Another option would be to increase cash inflows through raising dividends. Under this scenario, profitable subsidiaries such as SK Telecom would raise dividends paid to the holding company, SK Inc., which would in turn increase Chey’s personal dividend income. SK Inc. holds a 30.6 percent stake in SK Telecom, the country’s largest telecommunications firm by market share.
While SK Group shares plunged Friday, joined by the benchmark Kospi’s 5.72 percent dive, shares of SK Telecom closed at a 0.5 percent gain, pricing in investors’ expectations on an improved dividend payout. In intraday trading, it surged as much as 5 percent.
Following the appellate court’s divorce ruling in 2024, local brokerage Hana Securities projected that SK Telecom would likely increase shareholder returns, allowing more dividends from the group’s cash-generating affiliates to flow directly to Chey. The brokerage named SK Telecom its top pick in the sector.
Market speculation has also centered on the potential monetization of Chey’s stake in unlisted SK Siltron. Chey personally owns a 29.4 percent stake in the semiconductor wafer manufacturer valued at over 5 trillion won.
In a deal currently being negotiated with Doosan, the buyer is expected to acquire SK Inc.’s 70.6 percent stake in SK Siltron, while separately purchasing Chey’s 29.4 percent personal stake.
Because his shares are a personal asset unrelated to the group’s management control, selling them would likely be the least burdensome way for Chey to raise cash for the divorce settlement.
Shares of SK Group’s key affiliates plunged Friday as the Kospi suffered a broad market rout. SK Inc. fell 3.82 percent, while SK hynix and SK Square tumbled 8.34 percent and 9.17 percent, respectively.