Choi Tae-won, 65, chairman of SK Group, has been ordered by the Seoul High Court to pay 944 billion won (approximately $800 million) to No So-young, 65, director of Art Center Nabi, as part of their asset division settlement. This amount is 4.368 billion won less than the 1.38 trillion won recognized in the previous appellate ruling, but significantly higher than the 665 billion won awarded in the initial trial.
The court ruled on July 24 that Choi must pay the amount with an annual interest of 5% from the day after the ruling until the full payment is made.
This ruling brings Choi's cash obligation close to 1 trillion won, prompting expectations of significant changes in the group's financial strategy. Industry insiders suggest various options for raising the necessary funds, including using shares as collateral for loans, utilizing cash assets from dividends and salaries, and asset liquidation.
Choi currently holds 12,975,472 shares (17.90%) of SK Corporation, along with shares in SK Discovery, SK Chemical, SK Telecom, SK Square, and a 29.4% stake in SK Siltron. While it is unlikely he will sell his controlling shares in SK Corporation, obtaining funds through collateralized loans is seen as a practical option.
Additionally, dividends and salaries from SK affiliates, as well as existing cash assets, are also considered viable sources of funding. The timing and amount of the asset division payment will likely lead to a combination of multiple funding methods, according to industry perspectives.
Asset liquidation is also viewed as a key strategy for raising funds. Notably, the sale of SK Siltron, which SK Group has been pursuing since last year, is under consideration. SK Group has been looking to sell its 70.6% stake in SK Siltron, with Doosan selected as the preferred bidder last December, although a formal contract has yet to be signed.
The value of SK Siltron has increased due to rising demand for AI semiconductors, making the company more valuable than initially expected. Additionally, improvements in the group's financial structure have reduced the urgency to expedite the sale.
However, the recent ruling has heightened the need for Choi to secure cash, which could change the situation. If Choi's 29.4% stake in SK Siltron is included in the transaction, it could significantly contribute to funding the asset division.
Market analysts believe that the SK Corporation board meeting scheduled for July 31 will be a pivotal moment in determining the direction of the sale. The board is expected to discuss the progress of the SK Siltron sale and future negotiation strategies in detail. If a sale policy is confirmed, negotiations with Doosan, which have been stalled for an extended period, are likely to resume in earnest.
An industry insider commented, "While the burden has decreased compared to the appellate ruling, 944 billion won is still a substantial amount for an individual to raise in a short period. It is highly likely that a comprehensive approach utilizing collateralized loans, dividends, salaries, and existing assets will be employed."
However, it remains uncertain whether this ruling will be finalized. Choi's legal team may still appeal to the Supreme Court after reviewing the ruling.
Following the ruling, a representative for Choi stated, "After nearly 20 years of marriage dissolution, the Supreme Court's ruling last year confirmed the divorce, and today we received the ruling on asset division. Chairman Choi expresses his regret for the concerns caused during the divorce process and will announce whether to appeal after reviewing the ruling."
* This article has been translated by AI.
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