A $1 billion divorce battle of a Korean tycoon couple goes beyond society section news as it has the potential to rock the ownership of South Korea’s third-largest conglomerate SK Group.

Roh Soh-yeong, director of art gallery Art Center Nabi and daughter of former President Roh Tae-woo, issued a statement Wednesday that she is willing to end her 31-year marriage with SK Group Chairman Chey Tae-won, who already filed for divorce in 2017 and publicly declared out-of-wedlock relationship and offspring.

Roh reportedly filed a counterclaim with the Seoul Family Court against Chey’s earlier divorce suit, demanding 300 million won ($252,143) in alimony and 42.3 percent of Chey’s shares in SK Holdings on grounds of her contribution as SK has flourished during their marriage.

Chey currently holds 18.4 percent in SK Holdings, worth 3.29 trillion won as of the Wednesday closing price. Roh’s claims would amount to a 7.80 percent stake worth 1.39 trillion won. This would leave Chey with 10.6 percent, which could significantly weaken his hold over the conglomerate, which includes the chipmaker SK Hynix, oil refinery giant SK Innovation and the country’s largest wireless carrier SK Telecom.

SK Holdings shares closed Thursday down 1.18 percent at 250,500 won.

The divorce made headlines when Chey in 2015 sent a 3-page letter to a local media outlet, confessing his extramarital affairs. He had sought a court-mediated settlement in 2017 but the two eventually went to trial last year after failing to reach an agreement.

Roh, who had been adamantly against a divorce to protect her family, revealed she now had a change of heart.

“I’ve spent the past 30 years of my life raising a family and trying to protect it,” Roh wrote on her Facebook page Wednesday. “I waited with a glimmer of hope during these painful and humiliating times but I have now lost that hope.”

“I feel it is time to let my husband find the ‘happiness’ he so desperately wants,” she added.

Eyes are now on how the divorce rulings might affect the governance of SK Holdings. Its largest shareholder is Chey, with Roh holding only a 0.01 percent stake. When combining the shares of 26 other special affiliated people, Chey owns 29.6 percent in his favor.

But if Roh’s demands are met, she would receive a 7.80 percent stake and Chey 10.6 percent, reducing Chey’s favorable ownership to 21.9 percent.

The court would take into account various factors when deciding how to split up Chey’s assets. All assets and earnings accumulated during marriage are subject to distribution. This typically excludes property acquired by gift or inheritance. Assets directly related to a company’s stable management would also receive special consideration.

Observers say Chey may raise the claim that most of the company assets were inherited from his father and former chairman. Meanwhile Roh is expected to argue for equitable distribution of the marital assets according to their individual contributions during marriage.

By Han Ye-kyung and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]