SK Group chairman’s $1 billion divorce swimsuit to have an effect on conglomerate’s governance


Seoul, Jun 2 (IANS): The “most costly divorce swimsuit” in South Korea’s historical past between SK Group’s Chairman Chey Tae-won and his estranged spouse, Roh So-young, is feared to have an effect on Chey’s grip on SK Group’s governance as questions come up over how he will pay such an enormous alimony.

Final week, an appellate court docket ordered Chey to pay 1.38 trillion gained ($1 billion) in property division to Roh, the one daughter of former President Roh Tae-woo.

The couple married in 1988 and have three kids.

Whereas the Supreme Court docket’s ruling remains to be pending, consultants are involved that if the ordered quantity is split because the appellate court docket dominated, it may shake up the governance of SK Group, the second-largest conglomerate in Korea, stories Yonhap information company.

The court docket dominated that Chey’s SK shares had been topic to division and acknowledged late President Roh’s slush fund value 30 billion gained and contributions to SK Group’s elevated worth and enterprise actions.

The mixed property of Chey and Roh was decided to be 4 trillion gained, with a division fee of 65 % for Chey and 35 % for Roh. The court docket ordered Chey to pay the divided sum in money.

Some speculate that Chey would possibly must promote his shares in SK Inc., the holding firm of SK Group, which incorporates SK Telecom, SK Innovation Co. and SK Sq., to fulfill the fee.

Chey is the most important shareholder of SK, holding 17.73 per cent, value 2.2 trillion gained, by way of which he controls different SK Group associates.

Nonetheless, insiders consider Chey is unlikely to promote his stake in SK because of the governance construction and the significance of his shares throughout the group.

As a substitute, Chey is anticipated to lift a part of the funds by way of money and actual property gross sales, with the rest coming from the sale of a stake within the privately held SK Siltron Co. and loans.

The Supreme Court docket choice may take two to a few years, as Chey has introduced his intention to attraction, giving him extra time to rearrange the quantity of the division.

 



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