South Korea’s SK Group Chairman, Chey Tae-won, addressed concerns on Monday about the potential impact of his recent divorce payment ruling on the conglomerate. Following a Seoul High Court decision in May that ordered Chey to pay over $1 billion to his estranged wife, Chey is appealing the ruling to the Supreme Court. Despite the legal battle, Chey assured the public and stakeholders that SK Group has the capacity to prevent any resulting vulnerabilities, such as hostile takeovers or other corporate crises.
In a rare public appearance, Chey apologized for the distress caused by his personal issues, reaffirming his commitment to his managerial responsibilities and the national economy. Chey, who holds a 17.7% stake in SK Inc and has control over key affiliates like SK Hynix, emphasized the conglomerate’s preparedness to counter any potential threats to its stability. He also highlighted the importance of maintaining control over the conglomerate amidst the ongoing divorce proceedings.
Following the court’s decision, SK Inc’s shares surged as investors speculated that Chey might sell part of his stake to cover the divorce settlement if upheld by the Supreme Court. However, analysts predict that Chey might opt to divest from non-core affiliates or secure loans to manage the payment, ensuring his control over the core operations of SK Group remains unaffected.
Source: Reuters