Chey Tae-won sells W944b in SK shares to fund divorce settlement

SK Group Chairman Chey Tae-won is selling 944 billion won ($694 million) worth of shares in SK Inc., the group's holding company.

SK Inc. disclosed Friday that Chey, its largest shareholder, will sell 1,653,924 shares of the company.

After the sale, Chey's ordinary share holdings in SK Inc. will fall from 12,975,472 shares to 11,321,548 shares.

The 944 billion won he will raise from the transaction matches the property division amount a court ordered him to pay Noh So-young, director of Art Center Nabi.

Of the total, 544 billion won will be sold to strategic investors who participated in acquiring part of the largest shareholder's stake after weighing SK Inc.'s business competitiveness and medium- to long-term growth prospects.

The remaining 400 billion won will be handled through a price return swap with securities firms. Under the structure, gains and losses between the contracting parties are settled based on future movements in SK Inc.'s share price, allowing the largest shareholder to continue sharing in the company's growth incentives for a set period.

SK Inc. said the stake change was intended to address Chey's personal funding needs arising from the property division lawsuit. It added that Chey had reviewed the transaction structure and scale to minimize the impact on the market and shareholders while ensuring the company's stable management and his continued responsibilities as its largest shareholder.

Chey's stake in SK Inc. will fall from 17.8% to 15.5%, and his stake including related parties will drop from 25.2% to 22.9%.

SK Inc. said Chey's status as the largest shareholder remains unchanged after the transaction, and that the combined stake including related parties will stay above 20% — or above 30% on a voting-share basis — leaving the company's stable management foundation intact.

Chey said he will continue to focus on responsible management and enhancing SK Inc.'s corporate value. SK Inc. said it will consistently pursue its existing growth strategy, investment plans and shareholder value enhancement policy.