SK Group Chairman's Record $1 Billion Divorce Heads Back to Trial After Mediation Collapses
SK Group Chairman Chey Tae-won and ex-wife Roh Soh-yeong failed to settle South Korea's largest-ever divorce during court-ordered mediation in Seoul on June 15, 2026, sending the dispute over a record 1.38 trillion won ($1 billion) asset division back to trial June 26. The central fight — whether a spouse's company stock counts as divisible marital property — is the same question California courts answer under Cal. Fam. Code § 760.
According to Bloomberg, the two appeared face-to-face in Seoul High Court for the first time in more than two years. The court ended mediation when no agreement materialized and scheduled oral arguments to recalculate a settlement that an appellate court had previously set at the record 1.38 trillion won figure. While South Korean law governs this case, the legal mechanics translate directly to California, where business equity is one of the most contested categories in high-net-worth divorce.
Key Facts
| Detail | Information |
|---|---|
| What happened | Court-ordered mediation in record divorce ended without settlement |
| When | June 15, 2026; trial oral arguments set for June 26, 2026 |
| Where | Seoul High Court, South Korea |
| Who's affected | SK Group Chairman Chey Tae-won and ex-wife Roh Soh-yeong |
| Central dispute | Whether Chey's SK Inc. stock holdings are subject to division |
| Settlement amount | Previously set at 1.38 trillion won (~$1 billion) |
Why This Matters Legally
The treatment of company stock determines the outcome of nearly every high-net-worth divorce. In the SK case, the entire $1 billion fight reduces to one issue: whether Chey's shares in SK Inc. are divisible marital assets or his separate property. That same characterization question decides who keeps what in California divorces involving founders, executives, and shareholders.
Stock complicates division because its value can derive from three different sources: property owned before marriage (separate), property acquired during marriage (community), and appreciation driven by a spouse's labor during the marriage. South Korea, like California, must trace each component. Korean courts generally divide assets based on each spouse's contribution to their acquisition and maintenance, which is why Roh's role and the timing of Chey's stock acquisitions are decisive. California applies a different but equally fact-intensive framework rooted in community property law, where the date of acquisition and the source of funds control the result.
How California Law Handles This
California treats all property acquired during marriage as community property, divided equally (50/50) at divorce under Cal. Fam. Code § 760. Property a spouse owned before marriage, or received by gift or inheritance, remains separate property under Cal. Fam. Code § 770. The hard cases — like the SK dispute — involve stock that crosses both categories.
When separate-property stock grows in value because of a spouse's efforts during marriage, California uses two apportionment formulas. The Pereira approach (from Pereira v. Pereira, 1909) credits the separate estate with a fair rate of return — often 7-10% annually — and assigns the remaining growth to the community. The Van Camp approach (from Van Camp v. Van Camp, 1921) values the spouse's labor at a reasonable salary, allocates that to the community, and leaves the rest as separate property. Courts pick the formula that achieves substantial justice based on the facts.
Disclosure is the other half of the equation. California requires both spouses to exchange complete preliminary and final declarations of disclosure listing every asset, including business interests and stock, under Cal. Fam. Code § 2104. A spouse who hides or undervalues stock faces severe consequences — in the landmark In re Marriage of Rossi (2001), a wife who concealed a $1.3 million lottery prize forfeited 100% of it. Full transparency about equity holdings is mandatory, not optional.
Practical Takeaways
The SK divorce offers concrete lessons for any California reader holding business equity or married to someone who does:
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Document the date and source of every stock acquisition. Shares bought before marriage with separate funds start as separate property under Cal. Fam. Code § 770 — but you need records to prove it.
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Expect a forensic valuation. High-stakes divorces require business appraisers and forensic accountants to value closely held stock, trace commingled funds, and calculate Pereira/Van Camp apportionment.
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Disclose everything. California's mandatory disclosure rules under Cal. Fam. Code § 2104 carry real penalties; concealment can cost you the entire asset.
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Consider mediation, but prepare for trial. Court-ordered mediation failed in the SK case after two years. Have a litigation strategy ready if settlement talks stall over valuation.
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Address equity in a prenuptial or postnuptial agreement. The cleanest way to protect founder stock is to characterize it in writing before a dispute arises.
Frequently Asked Questions
Is company stock divided in a California divorce?
Stock acquired during marriage is community property and divided equally (50/50) under Cal. Fam. Code § 760. Stock owned before marriage is separate property under Cal. Fam. Code § 770, but any marital-effort appreciation may be apportioned to the community using the Pereira or Van Camp formula.
How does California value a spouse's business shares?
California courts rely on forensic accountants and business appraisers to value closely held stock as of the separation or trial date. For separate-property stock that grew during marriage, courts apply Pereira (crediting 7-10% annual return to the separate estate) or Van Camp (assigning a reasonable salary to the community) to split the gain.
What happens if a spouse hides stock in a California divorce?
Concealing assets violates the mandatory disclosure rules in Cal. Fam. Code § 2104. In In re Marriage of Rossi (2001), a spouse who hid a $1.3 million asset forfeited 100% of it. California courts can award the entire concealed asset to the other spouse plus attorney's fees and sanctions.
Can a prenuptial agreement protect founder stock in California?
Yes. A valid premarital agreement can characterize company stock and its future appreciation as separate property, keeping it out of the community estate under Cal. Fam. Code § 770. The agreement must meet California's enforceability requirements, including full financial disclosure and independent legal counsel for both parties.
Why did the SK Group divorce go to trial instead of settling?
Court-ordered mediation ended June 15, 2026, without agreement because the parties could not resolve whether Chairman Chey's SK Inc. stock is divisible. Seoul High Court scheduled oral arguments for June 26, 2026, to recalculate the settlement, which had previously reached a record 1.38 trillion won (~$1 billion).
Talk to a California Divorce Attorney
If your divorce involves business equity, stock options, or a closely held company, the characterization and valuation of those assets will shape your entire financial outcome. A California family law attorney experienced in high-net-worth cases can build the documentation and expert support these disputes demand.
This article discusses recent news and provides general legal commentary. It does not constitute legal advice. Every case is unique. Consult a qualified family law attorney for advice specific to your situation.