Chey Tae-won’s $1 Billion Divorce

Chey Tae-won’s $1 billion divorce marked a historic settlement in South Korea, highlighting the complexities of high-profile separations and the financial implications for influential figures.

In a case that has captivated South Korea and drawn international attention, Chey Tae-won, chairman of SK Group, was ordered by the Seoul High Court in May 2024 to pay his ex-wife, Roh So-young, a staggering 1.38 trillion won (approximately $1 billion) in property division, along with 2 billion won in alimony. This ruling marks the largest divorce settlement in South Korean history.

The Individuals Involved

Chey Tae-won, born in 1960, is a prominent figure in South Korea’s business world, leading SK Group—the country’s second-largest conglomerate, encompassing major companies like SK Telecom and SK Hynix . His ex-wife, Roh So-young, is the daughter of former South Korean President Roh Tae-woo. The couple married in 1988 and has three children. Their marriage began to unravel in 2011 when Chey publicly acknowledged an extramarital affair and the existence of a child from that relationship.

Legal Proceedings and Court Findings

The divorce proceedings commenced in 2015, culminating in the 2024 ruling. The Seoul High Court’s decision significantly increased the settlement from an earlier lower court ruling of 66.5 billion won. The court recognized Roh’s contributions to Chey’s business success, noting that her father had protected SK Group’s former chairman, Chey Jong-Hyun. Furthermore, the court criticized Chey for showing no remorse for his extramarital affair during the trial.

Implications for SK Group and Chey’s Holdings

The ruling has substantial implications for the SK Group. Chey owns a 17.7% stake in SK Inc., the holding company of SK Group. Following the court’s decision, shares in SK Inc. surged by 9%, reflecting investor speculation that Chey might increase his holdings to maintain control over the conglomerate. Analysts suggest that to fulfill the settlement, Chey may use his shares as collateral for loans rather than selling them, to avoid diluting his control over SK Group.

Broader Impact and Future Outlook

This landmark case sets a precedent in South Korea regarding the division of assets in high-profile divorces, especially involving chaebol families. It underscores the legal system’s willingness to consider the non-financial contributions of spouses in asset division. Chey’s legal team has expressed intentions to appeal the decision to the Supreme Court, indicating that the legal battle may continue .

As the case progresses, it will be closely watched for its potential to influence corporate governance practices and divorce settlements within South Korea’s powerful family-run conglomerates.

FAQs: Chey Tae-won’s Divorce Case

1. Who is Chey Tae-won?

Chey Tae-won is the chairman of SK Group, South Korea’s second-largest conglomerate, known for subsidiaries like SK Telecom and SK Hynix.

2. Who is Chey Tae-won’s ex-wife?

His ex-wife is Roh So-young, daughter of the late former South Korean President Roh Tae-woo. She is a prominent figure in her own right, with a background in arts and academia.

3. Why did they divorce?

The marriage broke down after Chey publicly admitted in 2011 to having an extramarital affair and a child with another woman. Roh filed for divorce in 2015.

4. What was the final court ruling?

In May 2024, the Seoul High Court ordered Chey to pay 1.38 trillion won (approx. $1 billion) in property division and 2 billion won in alimony—the largest divorce settlement in South Korean history.

5. Why was the settlement amount so high?

The court acknowledged Roh So-young’s indirect contributions to SK Group’s success and emphasized her role in supporting Chey’s career over their decades-long marriage.

6. Is Chey appealing the decision?

Yes, Chey’s legal team has indicated plans to appeal the High Court’s decision to the Supreme Court.

7. Will this impact SK Group’s leadership?

Potentially. Since Chey holds a 17.7% stake in SK Inc., there are concerns about share dilution or loss of control. However, he may use shares as collateral rather than selling them.

8. What precedent does this set in South Korea?

It signals a shift in how courts assess asset division in high-profile divorces—especially recognizing non-financial contributions like emotional support, social standing, and influence.

9. How did the public react?

The public has shown keen interest, especially due to the case’s mix of business, politics, and personal drama. The size of the settlement has sparked debates on gender equality and fairness in divorce law.

10. What’s next?

With the appeal pending, the case may continue into 2025. Its outcome could influence future divorce laws and corporate family structures in South Korea.