The conclusion of the remanded retrial in the property partitioning suit between Chey Tae-won, chairman of SK Group, and Roh Soh-yeong, director of Art Center Nabi, will come on the 24th. After the Supreme Court overturned the appellate ruling that ordered 1.3808 trillion won in property partitioning and sent the case back, the Seoul High Court will issue a new decision.
The family division No. 1 of the Seoul High Court (presiding judge Lee Sang-ju, Director General) will hold the sentencing hearing for the remanded retrial of the couple's property partitioning suit at 2 p.m. on the 24th. The bench closed arguments on the 26th of last month with Chairman Chey and Director Roh present.
The key issues are whether Chairman Chey's equity in SK㈜ can be considered subject to property partitioning and at what point to value the stock. The closing price of SK Co., Ltd. on Apr. 16, 2024, the prior appellate argument-closing date, was 160,000 won, but on the 26th of last month, the remanded retrial's argument-closing date, it had risen to 815,000 won, more than fivefold.
Chey's side is said to argue that the prior appellate argument-closing date should be the reference point, while Roh's side has argued that the stock price as of the remanded retrial's argument-closing date should apply. Depending on which point is chosen, the valuation of the property subject to partitioning and Chairman Chey's funding burden could change significantly.
In the first instance, the court ordered Chairman Chey to pay 1 billion won in consolation money and 66.5 billion won in property partitioning to Director Roh. The appellate court raised the consolation money to 2 billion won and the property partitioning to 1.3808 trillion won. It included SK Co., Ltd. equity in the partitioning pool and recognized Roh's contribution at 35%.
In October last year, the Supreme Court vacated and remanded only the property partitioning portion. It found that the 30 billion won that former President Roh Tae-woo allegedly provided to former SK patriarch Chey Jong-hyon was illicit to a marked degree and therefore could not be credited as Roh's contribution. It also held there was a legal misapprehension in viewing some assets that Chairman Chey gifted or disposed of during the marriage as still held as of the appellate argument-closing date. The divorce and the 2 billion won in consolation money were finalized.
However, the Supreme Court did not directly rule that SK Co., Ltd. equity must be excluded from the property partitioning pool. On remand, the court must recalculate Roh's contributions in household, childcare, and property maintenance after excluding the contribution of illicit funds.
Another issue is how far to view stock price increases after the marital breakdown as growth in the value of the marital estate. The Supreme Court presented the principle that if post-breakdown asset changes stem from one spouse's independent efforts or new economic circumstances and are unrelated to the property relations formed during the marriage, they must be excluded from the partitioning pool.
The outcome could differ depending on whether the Seoul High Court views the recent rise in SK Co., Ltd. stock as an extension of equity value formed during the marriage, or as subsequent gains driven by Chairman Chey's management activities and the AI and semiconductor cycle.
Depending on the ruling, the property partitioning amount could be cut significantly from the previous 1.3808 trillion won or be recalibrated. If either side appeals, the case will return to the Supreme Court for review.