Chey Tae-won, SK(034730) Group chairman, and Roh Soh-yeong, head of Art Center Nabi, are said to be agonizing until the last minute over whether to file a final appeal in their property division lawsuit worth about 944 billion won. The deadline for a final appeal is by 12 a.m. on the 14th. If either side files a petition for a final appeal, the legal battle that began in 2017 will again go before the Supreme Court.
According to the legal and business communities on the 14th, the sides of the chairman and the head are said to be weighing until the end the practical benefit of a final appeal over the property division ratio, the method of valuing the property, and how payment would be made.
◇ Chey Tae-won's side: 30 billion won was excluded, but the partitioning ratio fell only 1.6 percentage points
One of the issues Chey's side is focusing on is the property division ratio. Before remand, the appeals court set the property division ratio between Chey and Roh at 65% and 35%, respectively. Later, the Supreme Court found that the 30 billion won support from former President Roh Tae-woo could not be evaluated as Roh's contribution to the formation of property.
However, the court on remand set the partitioning ratio between Chey and Roh at two-thirds and one-third, respectively. Roh's share fell only about 1.6 percentage points, from the previous 35% to about 33.3%.
Chey's side is said to hold the view that it is necessary to seek a fresh judgment on whether it is appropriate that Roh's contribution was recognized to this extent even though the Supreme Court excluded the 30 billion won from the contribution factors.
It is also understood that they are reviewing a final appeal over the decision to include in the divisible property the equity in SK Siltron for which Chey held economic rights through a total return swap (TRS), and the method of valuing it.
◇ Burden of raising 944 billion won in cash… advance disclosure if selling SK Corp. shares
The need to raise the 944 billion won property division payment in cash is another factor adding to Chey's side's concerns. Even considering the size of Chey's asset holdings, to raise cash approaching 1 trillion won in a short period, there is speculation that financing using SK Corp. shares or disposing of part of the equity could be necessary.
If Chey sells a large block of SK Corp. shares, the advance disclosure system for insider transactions must also be considered. As a rule, a trading plan must be disclosed at least 30 days before the scheduled transaction date.
If the owner's plan to sell equity is disclosed in advance, they must also consider not only the impact on the group's control but also the possibility that concerns over a large potential sell volume—an "overhang"—will surface in the market and affect the stock price.
◇ Roh Soh-yeong's side also reviewing the valuation reference date and the method of calculating the partitioning amount
Roh's side is also said to be deliberating whether to pursue a final appeal. On remand, the court valued SK Corp. shares and other assets using as the reference point not the close of arguments in the remand proceedings, but April 2024, when arguments concluded at trial on the divorce claim.
Stock price gains after April 2024 were not directly reflected in the property value but were considered in the process of setting the property division ratio. Roh's side is reportedly reviewing whether there is practical benefit in contesting again at the Supreme Court the valuation reference date and the method that reflected subsequent stock price changes.
The sides also differ over how the property division payment should be made. Chey's side proposed several payment methods, including transferring some shares to reduce the cash burden, but Roh's side is said to be reluctant. Roh's side is reportedly insisting, in line with the remand court's ruling, on receiving the entire 944 billion won in cash.