AI Chip Manufacturer Magnate to Appeal Court Ruling on Divorce Settlement Payments

The magnate of a South Korean AI chip manufacturer has filed an appeal against a court ruling that requires him to pay nearly 11 billion won as part of his divorce settlement. His lawyers reported on Saturday that this is the largest divorce case in South Korea's history.

In Seoul, South Korea, the court ruled that Choi Tae-won, the 65-year-old chairman of SK Group, which owns the leading global memory chip producer SK hynix, must pay his ex-wife Roh So-hyun 1.38 trillion won. This sum, equivalent to over $1 billion at the exchange rate when the decision was made, led local media to nickname it the 'divorce of the century.'

Choi appealed to the Supreme Court, which requested the High Court to review its 2024 decision. This resulted in a reduction of the payments owed by the magnate to 944 billion won ($666 million) in July of this year, which remains the largest sum awarded in asset division cases during divorce in South Korea.

The Seoul High Court ruled last month that Roh is entitled to a cash payment equal to one-third of the couple's jointly acquired assets, including SK shares owned by Choi. The basis for this was her family role and support for SK Group's activities.

The magnate's lawyers stated on Saturday that he appealed the July ruling, bringing the case back to the highest judicial level in the country. In a statement sent to AFP, his lawyers said: 'After careful consideration of various factors, Chairman Choi Tae-won has appealed to the Supreme Court. We will approach the upcoming procedures with a commitment to minimizing any negative impact on shareholders and Group management.'

Roh's legal team declined to comment on AFP's inquiries. The appeal may prolong the scrutiny of this legal dispute, which has drawn attention to Choi's control over SK Group amid the rising value of its chip assets due to the artificial intelligence boom.

SK Group shares have more than tripled in price since December 2015, when Choi publicly admitted to extramarital affairs. The South Korean publication Money Today reported that Choi offered Roh a combination of shares and cash to settle the asset division in order to limit market influence, but she reportedly demanded full cash payment, forcing him to appeal due to the need to sell a large number of shares.

Choi and Roh, daughter of a former South Korean president, married in 1988 and raised three children together, but the couple is believed to have lived separately for over 15 years. In 2015, Choi admitted to having a child with his mistress.

The 2024 ruling requiring payment to Roh referenced a fund of 30 billion won that her former presidential father, Roh Tae-woo, used to stimulate SK Group's growth. However, the Supreme Court rejected this argument in October, stating that any such funds were likely obtained through illegal bribes and therefore should not be counted.

The Supreme Court also separately ordered Choi and his mistress to pay Roh 2 billion won in alimony, which his mistress, Kim Hee-yeon, paid in 2024.