Chey Tae-won, billionaire and chairman of SK Group, prepares to leave after speaking during the Nikkei Forum Future of Asia in Tokyo, Japan, on Thursday, May 23, 2024.

SK Inc. Shares Soar Amidst Billion Divorce Settlement

Seoul, South Korea – A gripping legal saga has sent shockwaves through the South Korean business community, with shares in tech conglomerate SK Inc. surging as high as 16% following a shocking divorce settlement.

Court Orders Chairman to Pay Billion

Billionaire chairman Chey Tae-won has been ordered by a Seoul court to pay a staggering 1.38 trillion Korean won (approximately billion) to his estranged wife, Roh Soh-yeong.

Roh’s initial demands reportedly reached 2 trillion won, but the final settlement remained significantly lower. Nevertheless, the size of Chey’s court-ordered payment invigorated SK Inc. shares, which soared by more than 9% during the trading session.

Tech Titan with Global Reach

SK Inc. stands as one of South Korea’s technological powerhouses. It serves as the holding company for SK Hynix, a global memory chip giant, and SK Telecom, a leading mobile network operator.

A Tainted Legacy

The marital strife stems back to 2015 when Chey publicly acknowledged an extramarital child. Two years later, he initiated divorce proceedings against Roh, igniting a highly publicized legal battle.

Roh’s legal counsel claimed that her late father, former South Korean President Roh Tae-woo, provided Chey with financial assistance in the 1990s, which allegedly catapulted SK Inc.’s growth. Chey’s defense team vehemently denied these allegations.

The Aftermath

The court’s decision has ignited a whirlwind of reactions. There has been speculation that the lowered settlement amount may have contributed to the surge in SK Inc. shares, indicating investors’ confidence in the company’s resilience amidst personal challenges.

Lessons Learned

This high-profile case highlights the complexities and often bitter realities of divorce settlements, particularly when vast financial stakes are involved. It also underscores the enduring impact that salacious allegations and legal battles can have on the reputation and value of businesses.

Data sourced from: cnbc.com