Choi Tae-won: "I will set the truth straight for honor"... Will collusion between politics and business become the biggest issue? (Comprehensive)

SK "Misinterpreted as Growing with Illicit Funds"
Supreme Court Issues Legal Judgment Over Factual Accuracy
Disputes Remain Over Division of Specific Assets and Property

Choi Tae-won, Chairman of SK, expressed his determination to correct the truth regarding the appellate court ruling on the divorce lawsuit with No So-young, Director of Art Center Nabi, stating that "it denied the history of SK's growth." Since Chairman Choi's side has expressed their intention to appeal, it is expected that the controversy over collusion between politics and business will emerge as a key issue in the upcoming Supreme Court appeal concerning SK Group's growth history.

Chairman Chey Tae-won of SK. Photo by Jo Yong-jun jun21@

On the morning of the 3rd, Chairman Choi attended an emergency meeting of the SUPEX Council held at the SK Seorin Building in Jongno-gu, Seoul, and said, "I apologize for causing concern to all SK members and stakeholders due to personal matters," adding, "I will quietly fulfill my duties to ensure there is no negative impact on both SK and the national economy."

He continued, "While my belief in respecting the judiciary's judgment remains unchanged, I cannot help but express regret over this ruling that denies the history of SK's growth," and stated, "For the honor of SK and all its members, I will definitely correct the truth."

On that day, the SUPEX Council was convened temporarily at the initiative of executives who shared the recognition that the appellate ruling seriously damaged not only Chairman Choi personally but also the group's value and history, necessitating the organization of the group's stance and discussion of countermeasures. About 20 people attended the meeting, including Choi Chang-won, Chairman of the SUPEX Council, and CEOs of major affiliates.

The group's response at this level is interpreted as being due to the appellate court's judgment reflecting that Director No significantly contributed to the formation of assets. On the 30th of last month, the Family Division 2 of the Seoul High Court (Presiding Judges Kim Si-cheol, Kim Ok-gon, Lee Dong-hyun) ruled, "The plaintiff (Chairman Choi) shall pay the defendant (Director No) 2 billion KRW in consolation money and 1.3808 trillion KRW in property division." This amount is about 20 times higher than the 66.5 billion KRW property division recognized in the first trial in 2022.

The court recognized as fact the claim that 30 billion KRW of slush funds from former President Roh Tae-woo, Director No's father, flowed into the late Chairman Choi Jong-hyun's assets, judging that it influenced the increase in SK's corporate value. Furthermore, the court saw that Roh's "intangible contribution" also played a role in SK's acquisition of Pacific Securities and entry into the mobile telecommunications business.

However, Chairman Choi's side denies receiving money from former President Roh and argues that Chairman Choi Jong-hyun mobilized affiliate funds for the acquisition of Dongyang Securities. Also, SK Group was selected as the second mobile telecommunications private operator in August 1992 during the Roh Tae-woo administration but returned the business license after one week due to allegations of preferential treatment. SK's entry into the mobile telecommunications business occurred later, after President Kim Young-sam took office.

At the SUPEX Council meeting, some CEOs reportedly raised objections regarding this, stating, "It is a historical fact and a direct experience that despite winning the second mobile telecommunications business license with overwhelming scores during the Roh Tae-woo administration, the business license was returned after one week due to government pressure."

However, the Supreme Court appeal is a "legal review" focusing on whether there are legal issues in the judgments of the first and second trials, rather than on factual matters. Therefore, the legal community views that the Supreme Court is likely to uphold the second trial's ruling regarding the facts of SK Group's growth due to collusion between politics and business.

SK REITs (SK Entrusted Management Real Estate Investment Company) will enter the KOSPI market next month. On the 18th, the SK Group headquarters located in Jongno-gu, SK Seorin Building. Photo by Mun Ho-nam munonam@

However, the legality of the property division target is expected to be a key issue at the Supreme Court. The amount to be divided will vary greatly depending on whether the SK shares inherited by Chairman Choi are considered his separate property or included as joint property subject to division.

In the first trial, the SK shares held by Chairman Choi were ruled as separate property originating from shares of SK affiliates gifted or inherited from his father, former Chairman Choi Jong-hyun, and thus not subject to property division. However, the second trial ruled that SK shares should be included in the property division.

In particular, not only the SK shares held by Chairman Choi but also SK shares worth about 1 trillion KRW gifted to 23 relatives in 2018 were included as property division targets. If the Supreme Court recognizes this fact, Chairman Choi will have to pay additional money to Director No for the shares distributed to relatives.

Chairman Choi stated, "Besides wisely coping with this matter, I intend to focus more on group management by responding to the harsh global environmental changes and enhancing business competitiveness," adding, "We will pursue 'qualitative growth' based on solid management rather than quantitative growth."

This content was produced with the assistance of AI translation services.