Chey Tae-won, who must secure 944.0 billion won in cash, will he avoid a stock sale… is the ‘Sovereign trauma’ at play? - 경향신문

This article was translated by an AI tool. Feedback Here.

Chey Tae-won, Chairman of SK Group and Chairman of the Korea Chamber of Commerce and Industry, answers reporters’ questions at a press briefing during the KCCI Jeju Forum on the 15th. Provided by the Korea Chamber of Commerce and Industry

With the divorce property division amount that SK Group Chairman Chey Tae-won must pay to Noh So-young, director of Art Center Nabi, set at 944.0 billion won, the business community’s eyes and ears are fixed on Chey’s ‘pocket’. Selling shares of the holding company is emerging as a leading way to assemble cash close to the trillion-won mark, but it remains uncertain whether he will actually play that card. Instead, taking out loans secured by his holdings or drawing together dividends are being mentioned first. The market expects Chey to show caution about selling stock because of the ‘grim saga’ that troubled him in the past.

The conclusion of the remanded trial in the Seoul High Court on the 24th over the property division lawsuit between Chey and Director Noh effectively amounts to Chey’s ‘loss by decision’. The court ordered Chey to pay Noh 944.0 billion won plus delay interest in cash, a figure sharply reduced from the 1.3808 trillion won set in the second-instance ruling. The bench set April 16, 2024the date the appellate pleadings concludedas the valuation date for division, and instructed that settlement be made in cash instead of splitting SK㈜ shares themselves. While he does not have to hand over holding-company stock directly, avoiding an immediate shock to the group’s governance structure, Chey now faces the task of securing massive cash.

Attention now centers on how Chey will secure more than 940.0 billion won in cash. One option under discussion is to sell part of his SK㈜ stake. With SK㈜’s share price rising on the back of the artificial intelligence (AI) industry and the semiconductor supercycle, the value of Chey’s holdings (17.9%·12.97 million shares) currently stands in the 8-trillion-won range. By simple math, selling only around 5% of the stake could cover the payment.

However, some in the business community suggest he may not actively consider the card of a direct stake sale. Concerns about ‘overhang’ (potential sell-side supply) from stock disposals could weigh on the price, and a reduced ownership ratio could affect the stability of control over the long term.

On the 24th, the Family Division 1 of the Seoul High Court ruled in the remanded trial over the property division suit between SK Group Chairman Chey Tae-won and Noh So-young, director of Art Center Nabi, that Chey must pay 944.0 billion won to Noh as the property division. The photo shows Chey and Noh appearing for a hearing last month. Yonhap News

Accordingly, a prevailing view is that Chey may combine multiple measures to retain as much of his SK㈜ stake as possiblestock-collateral loans, higher dividends, and leveraging unlisted assets. First, expanding loans backed by the shares he holds is being mentioned as a strong option. Chey has previously used stock-collateral financing, and the higher share price is seen to have expanded his collateral headroom. If cash is secured through loans from financial institutions, funds can be raised without changes to the governance structure.

Another major option is to increase cash inflows by using the dividend policies of the holding company and key affiliates. Under this scenario, core profit-making affiliates such as SK hynix and SK Telecom raise the dividends they remit to SK㈜, the holding company, which in turn boosts Chey’s personal dividend income. Based on the 2025 closing, Chey’s dividends are estimated at about 103.8 billion won, which could partly help with interest payments on loans and cash procurement.

The possibility of monetizing his stake in the unlisted asset SK Siltron is also being raised. Chey personally owns 19.4% of SK Siltron, a semiconductor wafer manufacturer. SK Group is currently pushing to sell the 70.6% stake in SK Siltron that SK㈜ holds, and the company’s overall value is estimated in the 67 trillion won range. If a sale goes through, Chey could potentially secure around 700.0 billion won in cash by selling or pledging his personal stake. This is one scenario that could cover a significant portion of the payment without touching SK㈜ shares.

Some interpret Chey’s expected caution about selling shares as influenced by memories of past ‘foreign-capital attacks’ that shook management control. In 2003, SK Group suffered a severe control crisis when the foreign hedge fund ‘Sovereign’ abruptly amassed 14.99% of SK㈜ and demanded the management’s ouster. Subsequent disputes with outside forces, including private equity funds, are cited as events that underscored the importance of defending the governance structure. Because of this track record, analysts say he may feel burdened by any decision that reduces his stake, even slightly.

Looking at SK㈜’s current governance layout, Chey’s friendly stake is relatively solid. Combining related-party holdings, including those of his younger sister Chey Ki-won, head of the Happy Nanum Foundation, the total is around 30%. Thus, there is a counterargument that selling some shares would not immediately have a decisive impact on control. Nevertheless, the emphasis on preserving his stake can be linked to the fact that the group, led by SK hynix, is delivering results in the AI semiconductor market. It may reflect a strategic judgment to minimize uncertainty and maintain a stable management environment.

There is, however, a wary view that Chey’s arithmetic to avoid governance risks could inadvertently weaken the group’s overall investment drive. If dividend burdens on the holding company and key affiliates increase to fund Chey’s interest payments and large cash needs, companies’ internal reserves could decline. A business community source said, “Especially for SK hynix, which must coninue trillion-won-level capital expenditures and R&D every year amid the AI semiconductor supercycle, a group-wide shift in financial policy toward prioritizing cash securing could become a strategic risk.” With defense of control as the top priority but without undermining the growth of core businesses, the business community and the market are focused on which funding card Chey will pull.