SK Group Chairman Choi Tae-won must pay 944 billion won ($708 million) in property division to his ex-wife Roh So-young, the Seoul High Court ruled on the 24th in a remanded case. The court recognized Roh's 33% contribution to marital property formation and ordered Choi to pay annual interest of 5% from the judgment's finalization until full payment. This ruling represents one of the largest property division awards in Korean legal history, with daily interest alone reaching approximately 129.31 million won.
Seoul High Court Orders 944 Billion Won Property Division
The Seoul High Court Family Division 1 (Presiding Judge Lee Sang-joo) ruled on the 24th that Choi must pay Roh 944 billion won in property division. The court also ordered payment of interest at an annual rate of 5% from the date of judgment finalization until full repayment. At a 5% annual rate, the delay damages amount to 47.2 billion won per year or 129.31 million won per day.
Roh's contribution to property formation was recognized at 33% in this trial, lower than the 35% recognized in the 2024 appeals court. The court excluded from property division calculations the 30 billion won from former President Roh Tae-woo's side and the 1.1116 trillion won that Choi gifted to relatives after the de facto marital breakdown.
Court Calculates Property Based on April 2024 Valuation
The remanded trial court maintained the property valuation base date as April 16, 2024, the closing date of the appeals court arguments. At that time, SK shares traded at 160,000 won, compared to 815,000 won on the 26th of last month, the closing date of the remanded trial arguments - a more than fivefold difference.
Excluding items removed from property division, Choi's assets are estimated at approximately 2.1 trillion won, including SK shares worth approximately 2 trillion won (as of April 16, 2024) and SK Siltron shares worth 700 billion won. Applying Roh's 33% contribution rate yields approximately 700 billion won. However, Roh received 944 billion won because the court considered recent increases in SK share prices.
Choi can pay the property division in cash, allowing him to retain his SK shares and maintain management control. The remanded trial court explained it considered that SK shares serve as the basis for management rights, as well as the name and form of divisible property, acquisition circumstances, and usage status.
Choi Considers Stock-Backed Loans and Asset Sales for Payment
Industry observers suggest Choi may consider stock-backed loans or SK Siltron stake sales to raise the 944 billion won. Choi holds a 17.9% stake (12,975,472 shares) in SK, with approximately 2.73 million shares already pledged as collateral. Related loans total approximately 440 billion won, and since current stake value far exceeds this, additional collateral capacity exists.
The possibility of selling Choi's 29.4% stake in semiconductor wafer manufacturer SK Siltron is also anticipated. SK Siltron is currently under sale discussions with Doosan, and if Choi's stake sale proceeds alongside the 70.6% stake being sold, substantial cash could be secured. SK plans to hold a board meeting on the 31st, where SK Siltron's sale is expected to be on the agenda.
Market observers also see potential for increased dividends from group companies including SK Telecom and SK. If SK Telecom increases dividends, funds flowing to SK would increase, potentially raising Choi's dividend income through his SK stake.
Judgment Becomes Final Without Appeal by Next Month 7th
The remanded trial judgment becomes final if neither party appeals by midnight on the 7th of next month. If either party appeals, finalization is suspended until the Supreme Court's final ruling. Choi's legal representative stated after the remanded trial judgment, "We will provide a detailed position on the judgment after thoroughly reviewing the written decision."
FAQ
Q: How much must SK Group Chairman Choi Tae-won pay in the property division ruling?
A: The Seoul High Court ruled on the 24th that Choi must pay 944 billion won to his ex-wife Roh So-young, plus annual interest of 5% from judgment finalization until full repayment. Daily interest alone amounts to approximately 129.31 million won.
Q: What percentage contribution did the court recognize for Roh So-young?
A: The court recognized Roh's contribution to marital property formation at 33%, which is lower than the 35% recognized in the 2024 appeals court. The court used April 16, 2024 as the property valuation base date when SK shares traded at 160,000 won.
Q: How might Choi Tae-won raise funds for the 944 billion won payment?
A: Industry observers suggest Choi may consider stock-backed loans using his 17.9% SK stake, selling his 29.4% stake in SK Siltron (currently under sale discussions with Doosan), or increasing dividends from group companies like SK Telecom and SK. Choi currently has approximately 2.73 million SK shares pledged as collateral with related loans totaling about 440 billion won.
