Chey Tae-won's Case Remanded, Cho Hyun-joon's Suspended Sentence Finalized
Legal Risks Cleared, Business Leaders Refocus on Management
AI Investments, Summit Hosting, and Tariff Response in the Spotlight
On October 16, the Supreme Court partially overturned and remanded the appellate decision in the divorce case between Chey Tae-won, chairman of SK Group, and No So-young, director of Art Center Nabi, giving SK Group some relief. Cho Hyun-joon, chairman of Hyosung Group, also shed his legal risks after more than seven years when the court acquitted him of embezzlement and breach of trust charges. Within the business community, there is an assessment that these conglomerate leaders will be able to focus on management for the time being, free from personal legal risks.
On October 16, the Supreme Court overturned the second trial's ruling that ordered Chey to pay No 1.3808 trillion won in asset division during their divorce proceedings, and sent the case back to the Seoul High Court. As a result, even if the Seoul High Court reviews the case again, there is a high possibility that the asset division amount will be significantly reduced to the level of the first trial (66.5 billion won). If the amount is reduced, Chey will not need to sell a large portion of his shares in SK Inc., which is central to the group's governance structure, and he will be able to focus on management, alleviating the prolonged legal risks that have persisted since the divorce mediation in 2017. However, as the case moves to the High Court, legal uncertainties still remain.
On the 16th, when the Supreme Court delivered a remand ruling in the divorce appeal case between Chey Tae-won, chairman of SK Group, and No So-young, director of Art Center Nabi, Chey’s legal team, lawyers Min Chul-ki (right) and Lee Jae-geun, were leaving the Supreme Court building in Seocho-gu, Seoul after the ruling. Photo by Yonhap News.
On the same day, in Chairman Cho's case, the Supreme Court dismissed both sides' appeals, stating that there was no error in the lower court's finding of guilt only on the embezzlement charge. All charges of breach of trust related to artwork were acquitted. In the first trial, the court did not recognize the breach of trust charge related to Galaxia Electronics (GE), but still sentenced Cho to two years in prison. However, the appellate court overturned the guilty verdict on the art fund-related breach of trust charge and sentenced him to two years in prison, suspended for three years.
Within the business community, there is a sense that the leaders of major conglomerates have shed their legal risks in succession and will be able to focus on corporate management for the time being. As the head of SK Group, Chey is currently pursuing large-scale investments in artificial intelligence (AI) semiconductors and is also working on SK Group's rebalancing (restructuring). He is also tasked with addressing the recent SK Telecom hacking incident and, at the end of this month, will serve as the chair of the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju, representing the business community.
On October 15, Chairman Cho also attended the 'Korea-US-Japan Economic Dialogue (TED)' in Tokyo, Japan, alongside Lee Jae-yong, chairman of Samsung Electronics, and Chung Eui-sun, chairman of Hyundai Motor Group, seeking solutions from the business sector regarding US tariff policies. On this day, Hyosung stated, "We respect the Supreme Court's decision," and added, "We will devote ourselves to global management in order to overcome the difficult domestic and international economic situation and contribute to the national economy."
A business industry official said, "In Chairman Chey's case, even if the High Court reviews the case again, unless clear evidence emerges, it will likely follow the Supreme Court's judgment," adding, "If nothing special arises, it is highly likely to be concluded at the level of the first trial." Another industry official also commented, "Both individuals will be able to focus on business activities for the time being, free from legal risks."
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