South Korea’s Supreme Court has overturned a historic divorce settlement for SK Group chairman Choi Tae-won, ruling that a significant portion of his ex-wife’s claimed assets originated from her former president father’s illegal bribes and could not be considered marital property.
The decision dramatically reduces what was poised to be the largest divorce payout in South Korean history, initially set at 1.38 trillion Korean Won, or just over $1 billion USD, plus interest. A lower court had previously ordered Choi, who leads one of the country’s largest business conglomerates, to pay this sum to his ex-wife, Roh So-young.
The high court had recognized a 30 billion Won (approximately $21.75 million USD) “secret fund” provided by Ms. Roh’s father, former President Roh Tae-woo, as contributing to SK Group’s growth, and thus deemed it marital property. However, the Supreme Court explicitly stated that these funds appeared to have stemmed from illegal bribes received by the former president, rendering them ineligible for division as marital assets.
Choi’s lawyer, Lee Jae-geun, emphasized the significance of the ruling. “I think it is extremely significant that the Supreme Court clearly stated that it was a mistaken judgment to accept that money as a shared part of the couple’s assets,” Lee said.
Despite overturning the property division, the Supreme Court upheld an order for Choi to pay Ms. Roh 2 billion Won (approximately $1.45 million USD) in alimony. The property division aspect of the case will now be sent back to a lower court for reconsideration.
The high-profile case has been dubbed the “divorce of the century” by South Korean media, drawing significant attention due to Choi’s position as a powerful chaebol leader and Ms. Roh’s lineage as the daughter of a former head of state. Their marriage ended in 2015 after Choi publicly acknowledged having a child with another woman.
Following the Supreme Court’s announcement on Thursday, shares of SK Group fell by 5.4 percent. Analysts suggest the ruling prolongs the legal dispute, although they believe the conglomerate’s management structure is unlikely to undergo major short-term changes as Choi is not immediately required to secure funds for a settlement.
Choi continues to control key subsidiaries of SK Group, including SK Telecom, SK Square, and SK Innovation. SK Group’s extensive business interests span telecommunications, energy, pharmaceuticals, and semiconductors.