Arya News - The award now equals 11.5% of the chairman’s SK Inc. stake, down from 67.3% in 2024.
SEOUL – SK Group Chair Chey Tae-won’s latest divorce appeal has reopened two questions: How much further could his 944 billion won ($668 million) property division award fall, and how much of his SK Inc. stake he may need to tap to pay it?
Chey appealed Friday against the Seoul High Court’s July 24 ruling in his divorce case with Roh Soh-yeong, director of Art Center Nabi, sending the dispute back to the Supreme Court.
On remand, the high court ordered Chey to pay 944 billion won in cash, down 436.8 billion won, or 31.6 percent, from the 1.38 trillion won awarded in 2024. The reduced award, combined with a steep rise in SK Inc.’s share price, has significantly eased the financial burden relative to the value of Chey’s core holding.
The 2024 award was equivalent to 67.3 percent of the value of his SK Inc. stake at the time, according to the Korea CXO Institute. When the remand ruling was issued last month, the revised award represented just 11.5 percent.
Chey owns 12,975,472 shares, or about 17.9 percent, of SK Inc., the holding company at the center of the group’s ownership structure. The stake was worth about 7.59 trillion won at Friday’s closing price of 585,000 won.
Each 10,000 won change in SK Inc.’s share price moves the value of Chey’s stake by about 129.8 billion won.
The market price does not affect the amount ordered by the court, but it could determine how many shares Chey must sell or pledge to raise the necessary cash. A higher share price would allow him to secure the same amount with fewer shares.
Holdings by affiliated parties also provide some protection, meaning a limited sale of Chey’s personal stake would not necessarily pose an immediate threat to his control of SK Group.
Chey’s side reportedly proposed paying with a combination of cash and SK Inc. shares following the July ruling, while Roh sought the full amount in cash.
Dividends could provide another source of funds. Chey received more than 775.5 billion won in dividends from SK Inc. between 2016 and 2025, according to the institute, although it is not publicly known how much remains available.
Borrowing against his shares is also possible, but his capacity may be constrained. About 5.88 million SK Inc. shares are already pledged against roughly 490 billion won in loans, limiting room for additional borrowing and leaving him exposed to collateral calls if the stock falls.
Chey’s 29.39 percent personal stake in silicon wafer maker SK Siltron represents another potential source of liquidity. SK Inc. agreed last month to sell its separate 70.61 percent holding in SK Siltron to Doosan Corp. for about 2.3 trillion won, while Chey’s stake remains subject to separate negotiations.
“The situation has changed considerably from 2024, when the award was worth roughly two-thirds of Chey’s SK Inc. holdings,” said Oh Il-sun, head of the Korea CXO Institute.
“What matters now is not only how much the property division could be reduced through the appeal, but also the level at which SK Inc.’s corporate value can be maintained.”