The retrial on remand in the property division lawsuit between Chey Tae-won, chairman of SK Group, and Roh Soh-yeong, director of Art Center Nabi, will conclude on the 24th of next month. It comes nine months after the Supreme Court sent the case back to the Seoul High Court in Oct. last year.
The Family Division 1 of the Seoul High Court (presiding judge Lee Sang-ju, chief judge) held a hearing on the retrial on remand in the property division lawsuit between Chey and Roh on the morning of the 26th and closed the arguments. The court set the ruling for 2 p.m. on the 24th of next month.
Although the parties were not required to attend the hearing that day, both Chey and Roh appeared at court. The hearing began at 10 a.m. and lasted about 45 minutes.
Roh arrived at the Seoul High Court at about 9:44 a.m. When asked by reporters, "Do you see progress toward a settlement?" and "Have you set the reference date for valuing SK Co. shares?" Roh did not answer and headed into the courtroom.
Chey arrived at court at about 9:51 a.m. Asked, "Are you disputing this on the premise that SK Co. shares have been recognized as marital property subject to division?" and "Has there been discussion on the reference date for property division?" Chey replied only, "I will wrap this up well."
After the hearing ended, Chey left the courtroom first. He did not answer reporters' questions asking, "Have SK Co. shares been recognized as subject to property division?" and "Was there discussion on the reference date for property division?" and exited the court. Roh, who came out afterward, also did not answer the same questions.
At the hearing that day, the parties reportedly presented their positions on issues including whether SK Co. shares are subject to property division—a point of contention since the first trial—and the reference date for calculating the share price. Chey and Roh were also said to have made statements directly in court.
Earlier, on the 15th, the court held a second mediation session for an hour and 30 minutes with both Chey and Roh present. But mediation did not materialize, and the case returned to formal proceedings.
The key issue on remand is whether SK Co. shares held by Chey can be deemed subject to property division. Chey's side argues that SK Co. shares are separate property formed through inheritance or gifts and thus are not subject to division. Roh's side contends that, given Roh's child-rearing and household labor and support for management, SK Co. shares should be viewed as marital property.
Separate property refers to property that one spouse owned before marriage or acquired in their own name during marriage, and, in principle, is excluded from property division.
The reference date for property division could also affect the outcome. The value of SK Co. shares would differ depending on whether the reference date is set as the close of arguments in the prior appeal before remand—the fact-finding stage of the divorce suit—or the close of arguments in the current retrial on remand. As of Apr. 16, 2024, the date the arguments closed in the appeal before remand, SK Co. shares were 160,000 won. At that time, the value of SK Co. shares held by Chey was in the 2.07 trillion won range. Recently, SK Co. shares have risen above 800,000 won.
In Dec. 2022, the first-instance court deemed SK Co. shares to be separate property and excluded them from division. It ordered Chey to pay Roh 100 million won in consolation money and 66.5 billion won as a property division payment.
The appeal before remand reached a different conclusion. It found that SK Co. shares were acquired during the marriage and that funds suspected to be slush money from former President Roh Tae-woo, Roh's father, flowed to the late SK patriarch Choi Jong-hyun. On that basis, it ruled that SK Co. shares constituted marital property and were subject to property division.
Before remand, the appellate court ordered Chey to pay Roh 1,380.817 billion won out of 4 trillion won in marital property. It also increased the consolation money from the first-instance 100 million won to 2 billion won.
The appellate court before remand said, "Funds that flowed from the former president's side to the late chairman Choi's side became commingled with the late chairman Choi's original personal funds and reached a state where they could be used, enjoyed, and disposed of like Choi's personal property," and determined that Roh's side's tangible contributions could be recognized.
The Supreme Court in Oct. last year overturned the appellate ruling. It held, "The 30 billion won in financial support from the former president cannot be considered Roh's contribution for purposes of property division." However, regarding Chey's donations or dispositions such as salary returns of shares including SK Co., it said, "They were made before the breakdown of the marriage, and there is room to view them as aimed at maintaining or increasing the value of the marital property, including SK Co. shares in Chey's name."