SK Group Chairman Choi Tae-won must pay 944 billion won in cash to Art Center Nabi Director No So-young following a court ruling on the 24th, triggering a 5.33% surge in SK Telecom's Korean stock price to 104,800 won at 2:16 PM. The market reaction stems from expectations that Choi will increase dividends from profitable subsidiaries like SK Telecom to fund the settlement, as selling his 17.90% stake in SK Inc. would threaten the group's governance structure. Hana Securities previously projected that SK Telecom, with its strong dividend capacity, would likely shift toward a structure delivering dividends from quality subsidiaries directly to the group chairman.
SK Telecom Korean Stocks Surge 5.33% Following Court Ruling
SK Telecom's stock price opened lower on the 24th due to Middle East risks and oil price surges, but reversed course at 2:16 PM following the divorce ruling, climbing 5.33% to 104,800 won. The court did not explain its reasoning in the courtroom, but the settlement amount suggests the court considered Choi's SK Inc. shares as subject to division. The stock surge reflects market expectations that SK Telecom's dividend scale will expand to fund the settlement, as the company is one of SK Group's most profitable subsidiaries with strong dividend payment capacity.
Choi Holds 17.90% SK Inc. Stake as Market Eyes Dividend Strategy
Choi currently holds 12,975,472 common shares of SK Inc., the group's holding company, representing a 17.90% stake. Securities firms view his SK Inc. shares as unsellable due to their position at the apex of the governance structure, where divestment could damage management control. Hana Securities identified SK Telecom as the top preferred stock, stating that expanding dividends from quality subsidiaries is virtually the only solution to reduce SK Group's governance-related issues. The financial industry expects Choi to raise funds through stock-backed loans and sales of unlisted assets.
Doosan Group Negotiates SK Siltron Stake Acquisition
Doosan Group is in final negotiations to conclude a stock purchase agreement (SPA) for SK Group's 51% stake in SK Siltron plus a 19.6% total return swap (TRS) contract stake, totaling 70.6%. The company is also reportedly reviewing a plan to acquire Choi's personal 29.4% stake in SK Siltron within this year. Market observers expect the sale of this unlisted asset to accelerate as Choi seeks to secure the necessary settlement funds.
FAQ
What did the court order Choi Tae-won to pay on the 24th?
The court ordered SK Group Chairman Choi Tae-won to pay 944 billion won in cash to Art Center Nabi Director No So-young as a property division settlement.
Why did SK Telecom Korean stocks surge 5.33% following the ruling?
SK Telecom's stock price jumped to 104,800 won at 2:16 PM on the 24th due to market expectations that Choi will increase dividends from the profitable subsidiary to fund the 944 billion won settlement, as selling his 17.90% stake in SK Inc. would threaten the group's governance structure.
What stake is Doosan Group negotiating to acquire from SK Group?
Doosan Group is in final negotiations to acquire SK Group's 70.6% stake in SK Siltron (51% direct stake plus 19.6% TRS contract stake) and is reviewing a plan to acquire Choi Tae-won's personal 29.4% stake within this year.
