Billionaire in South Korea Avoids $1B Divorce Settlement

South Korea’s Supreme Court has overturned a landmark lower court ruling ordering billionaire Chey Tae-won, chairman of the SK Group conglomerate, to pay his ex-wife Roh So-young a 1.38 trillion won ($1 billion; £788 million) divorce settlement. The high-profile case, dubbed the “divorce of the century” by local media, has now been sent back for review due to a miscalculation in the valuation of the couple’s shared assets.

At the heart of the controversy was a Seoul court’s 2024 ruling that awarded Ms. Roh what was believed to be the largest divorce payout in South Korean history. That decision factored in a 30 billion won slush fund linked to Ms. Roh’s father, former president Roh Tae-woo, which the court initially ruled had contributed to the growth of SK Group.

However, the Supreme Court found that the slush fund likely originated from illegal bribes and should not have been considered part of the couple’s joint property. “It is very significant that the Supreme Court clearly declared it was wrong to recognize that as a contribution,” said Mr. Chey’s lawyer, Lee Jae-geun.

The court did uphold a separate 2 billion won alimony payment to Ms. Roh.

Public interest in the case has been intense. Mr. Chey is one of South Korea’s most powerful business figures, leading a conglomerate that includes SK Telecom, SK Innovation, and SK Square, with interests spanning telecoms, energy, semiconductors, and pharmaceuticals. Ms. Roh, a prominent figure in her own right, is the daughter of a former president and a key figure in Seoul’s cultural and academic circles.

Following the ruling, SK Group shares dropped 5.4%, reflecting market uncertainty over the prolonged legal battle. However, analysts say a major shake-up in the group’s leadership remains unlikely for now, as Mr. Chey is not immediately required to raise capital for a settlement.