Second mediation hearing in Chey Tae-won-Roh Soh-yeong property division case draws attention to whether SK stock's fourfold surge will be reflected [This Week's Court Schedule]

The second mediation hearing in the remanded property division case between SK Group Chairman Chey Tae-won and Art Center Nabi Chair Roh Soh-yeong, known as the 'divorce case of the century,' will be held this week from the 15th to the 19th. Attention is focused on how large the property division award will be. A hearing on Coupang's request to suspend the effect of the Korea Fair Trade Commission (KFTC)'s decision to designate Bom Kim, chairman of Coupang, Inc., as the company's controlling shareholder is also scheduled.
According to legal sources on the 14th, the Family Division 1 of the Seoul High Court, presided over by Judge Lee Sang-joo, will hold the second mediation hearing in the remanded property division case involving Chey and Roh on the 15th.
Both Chey and Roh are expected to attend the hearing. It will be the first time the two have faced each other in court in about two years and two months, since the final hearing in the appeals trial in April 2024. At the first mediation session, only Roh appeared, and the court merely confirmed each side's position. This time, however, the two sides are expected to engage in substantive discussions over the size and method of the property division.
The biggest issue is the amount of the property division. In particular, whether the recent surge in SK stock prices will be reflected is drawing attention. The amount could vary significantly depending on whether the reference date for asset valuation is set at April 2024, when the appeals trial concluded, or at the point when the remanded trial concludes. At the time the appeals trial ended, SK shares were trading at around 160,000 won each, but they have recently risen to around 600,000 won. As a result, observers say the size of the property division could change substantially depending on the valuation date.
Chey's side maintains that the SK shares are his separate property, acquired through inheritance and gifts, and therefore are not subject to division. In general, separate property is not divided, but it can be included depending on a spouse's contribution to changes in assets during the marriage.
Roh's side argues that the shares should be treated as joint property because she supported Chey's business activities by handling household duties and child-rearing throughout the marriage.
In the first trial, the court recognized 100 million won in alimony and 66.5 billion won in property division. The appeals court later increased those amounts sharply to 2 billion won in alimony and 1.3808 trillion won in property division. However, in October last year, the Supreme Court sent the case back to the Seoul High Court, ruling that even if funds from former President Roh Tae-woo's slush fund were actually used in SK Group's growth, they cannot be recognized as a contribution to asset formation because they were illegal funds. The 2 billion won alimony award has been finalized.
The dispute between Coupang and the KFTC over the controlling shareholder designation is also moving into full swing. The Administrative Division 7 of the Seoul High Court, presided over by Judge Kwon Soon-hyung, will hold a hearing at 3 p.m. on the 16th on Coupang's request to suspend the KFTC's decision to change the controlling shareholder designation.
In April, the KFTC changed Coupang's controlling shareholder designation from the existing corporate entity Coupang, Inc. to Bom Kim. Coupang said that Coupang, Inc., a U.S. entity in which Kim and others hold shares, serves as the headquarters and owns 100% of the shares of the Korean subsidiary.
The enforcement decree of the MRFTA stipulates that when a corporation is designated as the controlling shareholder instead of an individual, relatives and family members must not participate in management, including by serving as executives. If Kim is designated as the controlling shareholder, he will be required from this year to report to the KFTC and disclose externally the status of shares held by himself, his family, and related domestic and overseas affiliates.
The KFTC said the exception requirements for designating a corporation as the controlling shareholder were not met, arguing that Kim Yu-seok, Bom Kim's younger brother and vice president of Coupang, Inc., was substantially involved in management by chairing meetings related to logistics and delivery. Coupang, however, countered that neither Kim nor his relatives hold shares in domestic affiliates, and that Kim Yu-seok also does not qualify as an executive under the MRFTA.
At this hearing, the key issue is expected to be whether the KFTC's decision should remain suspended until a ruling on the merits is issued. The court has already temporarily suspended the effect of the decision on its own authority until July 15.
scottchoi15@fnnews.com Choi Eun-sol Reporter