South Korea's Supreme Court Overturns $1 Billion Divorce Settlement

Strategic Insights -

South Korea's Supreme Court has overturned a historic 1.4 trillion won ($1 billion) divorce settlement awarded to Roh Soh-yeong, the estranged wife of SK Group Chairman Chey Tae-won, in a case that has captivated public attention and raised questions about personal accountability and corporate assets in South Korea's family-run conglomerates. The decision sends the case back to the Seoul High Court for reconsideration, alleviating immediate financial pressure on Chey, who controls SK Hynix, a global leader in memory chip manufacturing. The Supreme Court ruled that 30 billion won provided by Roh's father, former President Roh Tae-woo, to Chey's father in 1991 should not be considered her financial contribution, as it was deemed bribe money from Roh's presidency.

Key Takeaways:

  • The Supreme Court overturned a 1.4 trillion won ($1 billion) divorce settlement awarded to Roh Soh-yeong in a case that has captivated public attention.
  • The decision sends the case back to the Seoul High Court for reconsideration, alleviating immediate financial pressure on SK Group Chairman Chey Tae-won.
  • The Supreme Court ruled that 30 billion won provided by Roh's father, former President Roh Tae-woo, to Chey's father in 1991 should not be considered her financial contribution.
  • The court stated that the funds were "anti-social, unethical, and immoral" and outside the scope of legal protection.
  • Chey is required to pay 2 billion won in alimony to Roh, holding him accountable for the breakdown of their 37-year marriage.
  • The decision impacted financial markets, with SK Inc. shares dropping 5.6% to 218,500 won on South Korea's benchmark index.
  • Chey and Roh, married in 1988, have three grown children and the couple met while pursuing doctorates in economics at the University of Chicago.
  • The case continues to captivate public attention, highlighting tensions between personal accountability and the protection of corporate assets in South Korea's family-run conglomerates, known as chaebols.

Statistics:

  • 1.4 trillion won: The original amount of the divorce settlement awarded to Roh Soh-yeong.
  • 66.5 billion won: The amount awarded to Roh by the 2022 Seoul family court.
  • 30 billion won: The amount provided by Roh's father, former President Roh Tae-woo, to Chey's father in 1991.
  • 2 billion won: The amount of alimony Chey is required to pay to Roh.
  • 37 years: The length of Chey and Roh's marriage.
  • 5.6%: The drop in SK Inc. shares on South Korea's benchmark index after the decision.
  • 218,500 won: The value of SK Inc. shares after the decision.

Sources:

  • [The Korea Times]
  • [South Korea's Supreme Court]
  • [The New York Times]
  • [Times of Israel]