Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Surging SK shares complicate owner's property division suit
SK Group Chairman Chey Tae-won, left, and his ex-wife, Roh Soh-yeong, appear for a hearing at Seoul High Court in Seoul, April 16, 2024. Yonhap
By Lee Min-hyung
The high-stakes property division suit between SK Group Chairman Chey Tae-won and his former wife Roh Soh-yeong are heading into a critical juncture, as a dramatic surge in SK Inc.'s stock price has introduced fresh legal complications over how marital assets should be valued and divided.
The Seoul High Court is scheduled to hold a second mediation session on Monday in the retrial of the property division case, which was remanded by the Supreme Court last year. Both sides are widely expected to appear in person — their first face-to-face courtroom encounter in roughly two years and two months since the final appellate hearing in April 2024.
At the heart of the dispute is the stock value of SK Inc., the holding company of SK Group. When the appellate court closed arguments in April 2024, shares were traded at around 160,000 won ($105). They have since surged to approximately 600,000 won, driven by mounting expectations surrounding the expansion of the group's artificial intelligence (AI) ecosystem and the strong rally of its cash-cow chipmaker, SK hynix.
The timing question is now legally pivotal. Chey's side argues that the property division should be calculated by using the appellate court's closing date, which is the standard legal principle in similar cases. Roh's side, meanwhile, contends that the current elevated share price must be factored in, a position that would dramatically increase the settlement figure.
The two sides are also sharply divided on whether Chey's stake in SK Inc. should be subject to division at all. Chey argues the holdings constitute personal assets inherited or gifted from previous management and therefore fall outside the scope of marital property.
The Supreme Court remanded the case after rejecting the high court ruling that purported illicit funds connected to Roh's father, former President Roh Tae-woo, had contributed to the growth of the group. The court found that even if such funds had flowed into the company, recognizing them as a contribution to marital assets would be inappropriate.