SK Group chairman loses $644m divorce case amid AI chip boom
A South Korean court has ordered the chairman of SK Group, the conglomerate behind AI chipmaker SK Hynix, to pay his ex-wife $644m, testing leadership stability at a crucial node in the global semiconductor supply chain.
Chey Tae-won has been ordered by a South Korean court to pay 944bn won ($644m) to Roh Soh-yeong, ending a lengthy legal battle over their 35-year marriage. The award is lower than the 1.38tn won ordered previously, but still represents one of the largest divorce settlements in corporate history. The couple's marriage collapsed over a decade ago after Chey fathered a child with another woman, but the division of assets became increasingly complex as the group's valuation skyrocketed.
The reduced figure follows a Supreme Court decision last year which overturned an earlier verdict. The initial ruling had factored in 30bn won given to Chey in 1991 by his former father-in-law, former president Roh Tae-woo, from a political slush fund. The higher court determined that illegally obtained funds could not be counted as marital assets.
For global investors, the case draws attention to the personal dynamics governing South Korea's chaebols, the family-owned conglomerates that dominate the national economy. SK Group is the country's second-largest such empire after Samsung. The company began as a textile firm in 1953 but today provides everyday services to millions, from mobile phone plans to petrol stations.
The conglomerate's most critical asset, however, is SK Hynix, which supplies essential chips to Nvidia. The chipmaker recently surpassed a $1tn valuation on the South Korean stock market and raised $26.5bn in a landmark New York share offering, the largest ever US listing by a foreign firm. As European industries accelerate their own AI integration, the stability of key Asian chip suppliers has become a pressing concern.
Chey's standing has risen alongside SK Hynix's success, with President Lee Jae Myung recently commending him and Samsung's chairman as "Heroes of Korean People" during the unveiling of a major AI investment plan. Despite this public prominence, massive wealth transfers at the top of a critical technology supplier inevitably prompt scrutiny from international investors regarding corporate governance.
Chey's lawyers said: "Chairman Chey Tae-won is deeply sorry in that [the divorce] proceedings so far have caused concern to many people. We will share specific response to the verdict after we closely review the ruling." The award still requires formal finalisation before any funds change hands.
