SK Group Chairman Choi Tae-won has appealed a ruling that requires him to pay 9.44 trillion won to Noh So-young, the director of the Art Center Nabi, amid disagreements over the payment method.
According to Yonhap News on August 16, Choi's side initially considered accepting the ruling issued on July 24. However, they reportedly faced difficulties in securing the 9.44 trillion won in cash by the appeal deadline on August 14.
Choi's team also explored the option of selling some of their SK shares. However, they were concerned that selling a large number of shares at once could impact the stock price and the group's governance structure. They proposed a payment plan that included both cash and stock.
It is reported that if the stock price falls, Choi's side would cover the losses, but they would not claim any gains if the stock price rises. Nonetheless, Noh's side maintains that the full amount of 9.44 trillion won should be paid in cash as per the ruling.
Delays in payment also influenced the decision to appeal. If the property division payment is not made after the ruling is finalized, a 5% annual interest will accrue starting the next day, amounting to approximately 130 million won per day based on the 9.44 trillion won.
Choi's team submitted the appeal just one minute before the deadline on August 14, thereby postponing the finalization of the ruling and avoiding immediate interest payments.
The appellate court ordered Choi to pay Noh 9.44 trillion won and set the property division ratio at 33.3% for Noh and 66.6% for Choi.
In the appeal, the valuation of SK stock and the property division ratio are expected to be contentious issues once again.
The appellate court calculated the stock price based on April 16, 2024, when the appeals court proceedings effectively concluded, but it also considered subsequent stock price increases in assessing Noh's contribution to asset formation.
Choi's side is expected to argue that it is inconsistent to calculate the stock price based on a past date while also factoring in later stock price increases into the division ratio.
* This article has been translated by AI.
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