South Korean billionaire to pay $1bn to ex-wife in divorce settlement

In a landmark divorce settlement, South Korean tycoon and SK Group conglomerate chairman, Chey Tae-won, has been ordered to pay his ex-wife a staggering 1.38 trillion won ($1bn) in cash, making it the largest divorce payout in the nation’s history.

According to a report by BBC, the resolution comes nearly a decade after Chey Tae-won’s marriage crumbled amidst scandal, sparked by the revelation of his extramarital affair and the birth of a child with his mistress.

The Seoul High Court delivered a decisive verdict in favor of Roh So-young, awarding her a slice of Chey Tae-won’s corporate pie after their 35-year-long marriage.

Notably, Roh So-young is the daughter of former South Korean President Roh Tae-woo.

Chey’s legal team has swiftly announced plans to contest the court’s ruling, asserting that it heavily favored his ex-wife’s narrative.

This latest ruling significantly surpasses the 66.5 billion won settlement initially decreed by a lower court back in 2022.

Previously, a lower family court had rebuffed Roh So-young’s bid to claim a share of Chey Tae-won’s SK shares. However, the Seoul High Court reversed this decision, deeming the shares as joint assets and granting her a portion.

The court 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.”

Valuing Chey Tae-won’s wealth at a staggering 4 trillion won, the court has earmarked approximately 35% of this sum for Roh So-young, with whom he shares three children.

The judgment highlighted Roh’s instrumental contributions, citing her efforts in navigating regulatory hurdles and her father’s influential support, which acted as a protective shield for Chey Jong-hyon, the former chairman of SK Group, thus bolstering the company’s trajectory.

Moreover, the court underscored Chey’s apparent lack of contrition for his misconduct throughout the trial, coupled with a disregard for marital fidelity.

Emphasizing Roh So-young’s emotional turmoil stemming from Chey Tae-won’s infidelity, the court factored in her pain and distress when determining the augmented settlement amount.

Contrary to Chey’s legal team’s argument, the market responded favorably to the ruling, with shares of SK Inc., a global semiconductor powerhouse with diversified interests, surging by 9%.