Korean High Court Partially Overturns Nearly $1 Billion Divorce Settlement for SK Group Chairman

South Korea’s Supreme Court on Thursday sent back to a lower court the high-profile divorce case of SK Group Chairman Chey Tae-won, in which he had been ordered to pay a record settlement, giving the billionaire businessman a temporary reprieve.

Last year, the Seoul High Court ruled that Chey must pay his estranged wife, Roh So-young, 1.38 trillion won ($972.5 million) as part of their planned divorce settlement — the largest such payout in the nation’s history. The court had also ordered him to pay 2 billion won in alimony. Chey appealed the ruling.

The Supreme Court upheld the lower court’s order regarding the 2 billion won alimony payment but sent back the larger property settlement for further review.

According to the Korea Fair Trade Commission, SK Group is the country’s second-largest conglomerate, with assets worth 363 trillion won as of May 2025. Its affiliates include chipmaker SK Hynix (000660.KS).

Following the verdict, shares of SK Inc fell 5.4% on Thursday.

Analysts noted that if the original ruling had stood, Chey might have been compelled to raise funds by pledging SK shares as collateral, a move that can sometimes help stabilize stock prices.

In its 2024 ruling, the Seoul High Court had determined that Chey’s holdings in the holding company SK Inc (034730.KS) should be considered joint marital property. Roh is the daughter of former South Korean President Roh Tae-woo.

That decision had raised questions about how Chey could access such a large sum, as much of his wealth is tied up in shares across SK Group companies. Any sale of his SK Inc holdings could have diluted his control over both the holding company and SK Hynix.

The High Court had earlier accepted Roh’s argument that her parents had provided significant funds to the Chey family, which helped finance SK Group’s growth.

However, in its Thursday ruling, the Supreme Court said the appellate court erred in its judgment regarding the money given by Roh’s parents.

It found that the 30 billion won in question may have come from bribes received by former President Roh while in office, and therefore, Roh cannot claim ownership of assets her father had allegedly given to the Chey family around 1991.

The Seoul High Court’s 2024 ruling had overturned a 2022 lower court decision that had awarded Roh a much smaller settlement.

(Exchange rate: $1 = 1,419.02 won)