Tech Titan Ordered to Pay Ex-Wife $644m in Divorce Settlement

The recent court ruling that ordered Chey Tae-won, chairman of SK Group, to pay his ex-wife Roh Soh-yeong a staggering 944 billion won (approximately $644 million) in a divorce settlement has sparked controversy and debate about the dark side of South Korea’s chaebol system.

At its core, this case highlights the deep-seated problems within the country’s family-owned conglomerates. These companies dominate the economy and are often accused of cronyism and corruption, with ties to powerful politicians and government officials. The fact that Chey was initially ordered to pay his ex-wife 1.38 trillion won in 2024 underscores the brazen disregard for accountability shown by these chaebols.

The Supreme Court later overturned this ruling, declaring that the slush funds used to finance Chey’s lavish lifestyle were illegally obtained and could not be considered as part of the couple’s assets. This decision raises questions about the extent to which these chaebols are able to wield their influence and manipulate the system to their advantage.

Roh Soh-yeong is the daughter of former President Roh Tae-woo, who allegedly funneled 30 billion won from his slush fund to Chey in 1991. This transaction highlights the peculiar dynamics of South Korea’s marriage laws and the cozy relationship between these chaebols and the government.

The SK Group’s rapid ascent to global prominence has been driven by its subsidiary SK Hynix, which is at the forefront of the AI boom. However, this success story is tainted by allegations of corruption and cronyism. President Lee Jae Myung’s involvement in commending Chey as a “Hero of Korean People” during an AI investment plan unveiling only serves to underscore the patronage system that exists between these chaebols and the government.

This kind of relationship is corrosive and undermines trust in institutions. As South Korea continues to grapple with issues of corruption and inequality, this divorce case serves as a stark reminder that there is still much work to be done. The court’s ruling may have provided some measure of justice for Roh Soh-yeong, but it also highlights the need for more fundamental reforms within the chaebol system.

Chey’s lawyers responded to the verdict by expressing “deep sorrow” and promising a “specific response” after reviewing the ruling. However, it is clear that this case will not be easily swept under the rug. As South Korea continues to navigate its complex web of relationships between business, government, and politics, one thing is certain: the consequences of this divorce settlement will be far-reaching.

The SK Group’s next big move - a $26.5 billion listing in New York that promises to cement the company’s status as a global leader - has sparked warnings about a deeper crisis brewing within South Korea’s chaebol system. The writing is on the wall: accountability and transparency are long overdue. Will SK Group take steps to clean up its act, or will it continue to ride the waves of corruption and cronyism that have defined its success? Only time will tell.