Joyce Lee
SEOUL (Reuters) – South Korean SK Group Chairman Chey Tae-won said on Monday the conglomerate would not allow the outcome of its recent divorce settlement to leave SK companies vulnerable to a hostile takeover or other problems.
In late May, the Seoul High Court ruled that Chey must pay his ex-wife more than $1 billion as part of a planned divorce.
Chey is appealing the decision to the Supreme Court, he told reporters on Monday.
“There are areas where we need to prevent this from escalating into hostile takeovers or similar crises, but I think we have enough capacity to block them,” Che said.
Appearing unexpectedly before the press, he bowed deeply and apologized to the public for causing concern on personal matters, adding that he would continue to carry out his managerial duties while contributing to the national economy.
Chey owns 17.7% of the holding company SK Inc and controls SK Hynix, the world’s second-largest memory chip maker, and other SK subsidiaries through his stake in SK Inc.
Shares of SK Inc jumped after the Supreme Court decision as investors bet Chey may have to sell part of his stake to raise funds if the Supreme Court upholds the decision.
Analysts, however, say Chey could sell his holdings in non-core subsidiaries or take out loans to finance the divorce settlement without affecting his control of the conglomerate.