Choi Tae-won, 65, chairman of SK Group, and Noh So-young, 65, director of the Art Center Nabi, are set to receive a ruling today in their long-running property division case.
The Seoul High Court's Family Division, led by Judge Lee Sang-joo, will hold a public hearing at 2 p.m. to announce the verdict in the property division case, which has been ongoing since Choi filed for divorce mediation in July 2017, marking nearly nine years of legal disputes.
Choi and Noh married in September 1988 and have three children together, but their relationship deteriorated. In 2015, Choi publicly revealed the existence of an extramarital child, stating, "I have been living apart from Noh for over ten years due to a deep rift between us."
Choi filed for divorce mediation in July 2017, but it failed, leading to a formal lawsuit in February 2018. Noh countered with her own lawsuit in December 2019, agreeing to the divorce.
In December 2022, the first trial court ordered Choi to pay Noh 100 million won in alimony and 66.5 billion won in property division. However, the appellate court significantly increased the alimony to 2 billion won and the property division amount to 1.38 trillion won in May 2024.
This decision was based on the contributions of former President Roh Tae-woo's illicit funds of 30 billion won and Noh's role in the growth of SK Group, determining that Choi's shares in SK Holdings were subject to division.
However, in October of last year, the Supreme Court ruled that Roh's illicit funds could not be considered in the property division, stating that even if the funds were funneled into SK, they could not be counted as Noh's contributions. The case was sent back for retrial.
The appellate court's ruling on the alimony of 2 billion won was upheld, meaning the retrial will only address the property division.
The key issues in the retrial are whether Choi's SK shares are subject to division and, if so, how the division ratio should be calculated. Choi's side argues that the SK shares were formed through inheritance and gifts, thus should not be included in the division.
Conversely, Noh's side contends that her contributions in managing the household and raising the children warrant the shares being classified as joint property.
The timing for determining the property division is also critical. Depending on whether the reference point is the conclusion of the trial on April 16, 2024, or the conclusion of the retrial on June 26, the valuation could differ by more than five times.
As of the conclusion of the trial, SK's stock price was 160,000 won, valuing Choi's shares at approximately 2.7 trillion won. By the conclusion of the retrial, the stock price had risen to around 800,000 won. Both parties have the option to appeal the retrial ruling to the Supreme Court.
Meanwhile, the business community is closely watching whether this ruling will impact SK Group's governance structure and asset restructuring strategy. A larger property division could increase Choi's cash flow burden, while a smaller division or exclusion of SK shares from the division could alleviate some uncertainties regarding the group's business restructuring and future investments in areas like artificial intelligence.
* This article has been translated by AI.
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