South Korea

Court Awards Ex-Wife $644 Million in SK Group Chair's Divorce

Is SK Group's divorce scandal a deserved reckoning for Chey Tae-won or the catalyst South Korea needs to fix its system?

Published 1 hour ago

Court Awards Ex-Wife $644 Million in SK Group Chair's Divorce

Story

Above: SK Group Chairman Chey Tae-won at the Nasdaq MarketSite in New York on July 10. Image credit: Michael Nagle/Bloomberg/Getty Images

The Spin

Narrative A

The Seoul High Court's ruling against SK Group chairman Chey Tae-won is a deserved reckoning for a man who showed zero remorse for adultery, spent billions on a mistress while married and dismissed Korean domestic law. However, this case must not be allowed to damage the SK Group's fortunes. The company is a cornerstone of the South Korean economy; it's far too important for a civil trial to disrupt.

Korea JoongAng Daily

Narrative B

This divorce exposes something bigger than one billionaire's bad marriage. It cracks open Korea's chaebol system, where families hide wealth through holding companies and keep stock prices cheap to dodge taxes. A hostile takeover threat is now real, and that pressure may finally force the corporate governance reform that politicians have failed to deliver. The drama, it turns out, might fix the Korea Discount.

Bloomberg