Key Takeaways
- South Korea’s Supreme Court overturns $1 billion divorce settlement for SK Group chairman’s wife
- Court rejects wife’s claim that father’s bribe money constituted financial contribution
- Case sent back to lower court for reconsideration, delaying massive payment
- SK Inc. shares fell 5.6% following the ruling
Court Overturns Historic Divorce Settlement
South Korea’s Supreme Court has overturned a record 1.4 trillion won ($1 billion) divorce settlement awarded to Roh Soh-yeong, the estranged wife of SK Group Chairman Chey Tae-won. The decision provides immediate financial relief to the tycoon who controls , a global memory chip leader.
The case now returns to the Seoul High Court for reconsideration, marking a dramatic turn in one of South Korea’s most watched family legal battles.
Legal Battle Timeline
The dispute began with a 2022 Seoul family court ruling that granted Roh 66.5 billion won but denied her claim to half of Chey’s 17.5% stake in SK Inc. Last year, the Seoul High Court dramatically increased the settlement to 1.4 trillion won, citing Roh’s “indirect contribution” to SK Group’s growth.
However, the Supreme Court rejected this reasoning, stating that 30 billion won provided by Roh’s father, former President Roh Tae-woo, to Chey’s father in 1991 should not count as her financial contribution since it was bribe money.
Court’s Strong Stance on Bribe Money
The Supreme Court took a firm position, stating: “Roh Tae-woo’s act of providing large sums of money as part of bribes… violates public morals and other social order.” The court labeled the funds “anti-social, unethical, and immoral” and outside legal protection.
Despite this major victory for Chey, the court upheld a separate ruling requiring him to pay 2 billion won in alimony to Roh, holding him accountable for the breakdown of their 37-year marriage.
Market Impact and Background
The ruling immediately affected financial markets, with SK Inc. shares dropping 5.6% as investors had anticipated Chey might sell shares to cover the settlement.
Chey, 64, leads South Korea’s second-largest conglomerate. The couple married in 1988 at the presidential Blue House during her father’s tenure and have three grown children. They met while pursuing economics doctorates at the University of Chicago.
The marriage collapsed after Chey’s 2015 admission of having a child with his mistress. He filed for divorce, citing the impossibility of maintaining two families. The case highlights tensions between personal accountability and corporate asset protection in South Korea’s family-run .
