SK Group Chairman's Record $1 Billion Divorce Returns to Trial June 26
SK Group Chairman Chey Tae-won and ex-wife Roh Soh-yeong met at Seoul High Court on June 15, 2026 but failed to settle South Korea's largest-ever divorce, where Chey was previously ordered to pay roughly $1 billion (Bloomberg, 2026). For California residents, the case highlights how community property states divide marital wealth far differently than Korea's equitable-contribution model.
Key Facts
| Detail | Information |
|---|---|
| What happened | Court-ordered mediation failed; property-division trial resumes |
| When | Parties appeared June 15, 2026; hearings resume June 26, 2026 |
| Where | Seoul High Court, South Korea |
| Who's affected | SK Group Chairman Chey Tae-won and ex-wife Roh Soh-yeong |
| Prior ruling | ~$1 billion award — largest divorce settlement in Korean history |
| Practical impact | Demonstrates how high-net-worth divorces hinge on property characterization |
Why This Matters Legally
The Chey divorce demonstrates that the single most decisive issue in any high-net-worth divorce is property characterization — deciding which assets count as divisible marital property and which remain separate. The reported $1 billion figure stems from a 2024 appellate finding that Roh contributed to the growth of SK Group's value during the marriage, making a substantial share of that appreciation divisible (Bloomberg, 2026). When mediation fails, as it did on June 15, 2026, the trial court must value and characterize each asset class — shares, appreciation, gifts, and inheritances — under its jurisdiction's rules. That characterization, not the headline net worth, determines the final award. California courts confront the identical threshold question, though they answer it with a fixed 50/50 community property formula rather than a contribution-weighted analysis.
How California Law Handles This
Under Cal. Fam. Code § 760, all property acquired by either spouse during marriage is community property and is divided equally — a 50/50 split — upon divorce. California is one of nine community property states, and its rule is far more rigid than South Korea's equitable model, which weighs each spouse's specific contribution. Property owned before marriage, or received during marriage by gift, bequest, or inheritance, remains separate property under Cal. Fam. Code § 770 and is not divided.
The complexity in a Chey-style case would center on appreciation of separate property. If a California spouse owned company shares before marriage, those shares stay separate under § 770, but any increase in value attributable to the spouse's labor during marriage can become partly community. California courts resolve this through the Pereira and Van Camp apportionment formulas, allocating growth between separate capital and community effort. The community must also be reimbursed for separate-property contributions under Cal. Fam. Code § 2640.
Full financial transparency is mandatory. Both spouses must exchange preliminary and final declarations of disclosure under Cal. Fam. Code § 2104 and Cal. Fam. Code § 2105, listing every asset and debt. A spouse who conceals assets faces severe penalties: in the 2001 case In re Marriage of Rossi, a wife who hid a $1.3 million lottery prize forfeited 100 percent of it to her husband under Cal. Fam. Code § 1101.
Practical Takeaways
For California residents navigating a high-asset divorce, the Chey case offers several concrete lessons:
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Characterize every asset early. Determine whether each holding is community (acquired during marriage) or separate (pre-marital, gifted, or inherited) under Cal. Fam. Code § 760 and § 770, because this drives the entire division.
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Document separate property tracing. If you owned a business or shares before marriage, preserve records showing the pre-marital value so you can defend your separate claim and apply Pereira or Van Camp apportionment.
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Complete disclosures honestly. File complete preliminary and final declarations under Cal. Fam. Code § 2104; concealment can cost you 100 percent of the hidden asset under § 1101.
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Value the business with a neutral expert. For closely held companies and stock appreciation, retain a forensic accountant or certified valuation analyst before negotiating.
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Consider mediation, but prepare for trial. The Chey parties spent over two years and still failed to settle on June 15, 2026; have a litigation-ready valuation in hand even while attempting settlement.
Frequently Asked Questions
Would a $1 billion divorce settlement happen in California?
A billion-dollar award is possible in California, but the math differs. Under Cal. Fam. Code § 760, community property is split exactly 50/50, so a spouse would receive half of all wealth created during the marriage rather than a contribution-weighted share as in South Korea's 2024 Chey ruling.
How does California divide a business owned before marriage?
A business owned before marriage stays separate property under Cal. Fam. Code § 770, but appreciation during marriage may be partly community. California courts use the Pereira and Van Camp formulas to apportion growth between separate capital and the spouse's community labor, often producing a partial community interest.
What happens if a spouse hides assets in a California divorce?
Concealing assets is severely punished. Under Cal. Fam. Code § 1101, a spouse who breaches the fiduciary duty of disclosure can forfeit 100 percent of the hidden asset. In the 2001 Rossi case, a wife lost an entire $1.3 million lottery prize she failed to disclose.
Is California a community property or equitable distribution state?
California is a community property state, one of nine in the United States. Under Cal. Fam. Code § 760, marital property is divided equally — 50/50 — regardless of which spouse earned it. Most states use equitable distribution, dividing property by fairness factors rather than a strict equal split.
How long does a high-net-worth divorce take in California?
Complex divorces commonly take one to three years. California imposes a mandatory six-month waiting period before any divorce is final under Cal. Fam. Code § 2339, but asset valuation, business appraisals, and disputed property division — as the multi-year Chey litigation shows — routinely extend cases well beyond that minimum.
Speak With a California Divorce Attorney
If you are facing a divorce involving a business, stock holdings, or significant separate property, an experienced California family law attorney can help you characterize assets correctly and protect your interests. Our directory connects you with one vetted divorce attorney per county.
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.