SK Group to keep affiliates safe from hostile takeover after chairman’s divorce ruling By Reuters

SEOUL (Reuters) – South Korea’s SK Group Chairman Chey Tae-won said on Monday the conglomerate will make sure that the outcome of his recent divorce payment ruling does not leave SK companies vulnerable to hostile takeover or other problems.

The Seoul High Court ruled in late May that Chey must pay more than $1 billion to his estranged wife as part of their planned divorce.

Chey is appealing the ruling to the Supreme Court, he told reporters on Monday.

He owns 17.7% of holding company SK Inc and controls SK Hynix, the world’s second-largest memory chipmaker, and other SK affiliates through his stake in SK Inc.

Shares in SK Inc had jumped after the high court ruling, as investors bet that Chey may have to sell some of his stake in order to raise funds, if the Supreme Court confirms the ruling.

Analysts, however, say Chey may sell his holdings in non-core affiliates or take out loans to finance his divorce payment so as not to affect his control over the conglomerate.