Why This Billionaire Was Ordered to Pay Ex-Wife $1 Billion in Historic Divorce Settlement

South Korea has recorded its biggest divorce settlement in history after a court ordered billionaire Chey Tae-won to pay his ex-wife, Roh So-young, a whopping 1.38 trillion won (about $1 billion).....CONTINUE READING THE ARTICLE FROM THE SOURCE

A High Court in Seoul, Korea’s capital city, had on Thursday ruled that Roh is entitled to a sizable portion of her ex-husband’s business empire, SK Group, because she helped build it.

The couple’s 35-year-old marriage ended after the billionaire had an affair with another woman who had a child for him.

“It was reasonable to rule that, as his wife, Roh played a role in increasing the value of SK Group and Chey’s business activity”, the court ruled.

The court said Roh, who is also the daughter of a former South Korean President, Roh Tae-woo, helped SK Group navigate through regulatory challenges that could have hindered the company’s progress.

The ex-president was also said to have “played the role of a protective shield” for SK’s ex-chairman Chey Jong-hyon.

However, the billionaire’s lawyer said that the father’s political influence was more harmful to his business than being an advantage.

The judges also criticised Chey for his extramarital affair and his lack of remorse during the trial.

After the ruling, shares in SK Inc., a key company within SK Group, jumped 9%.

SK group is one of the world’s biggest makers of semiconductors, with interests in telecoms, chemicals, and energy.