Choi Tae-won-Roh So-yeong appeals ruling partly revised: 'Property division must be reassessed' vs 'No impact on conclusion'

2024.06.17. The Fair Economy — It was confirmed on the 17th that the appellate court, which ordered SK Group Chairman Choi Tae-won to divide property worth 1.38 trillion won to Roh So-yeong, director of Art Center Nabi, in their divorce suit, has partially amended its ruling. The amended ruling accepted the argument of Choi's side that the property division decision was flawed, but maintained the existing property division amount.

According to legal circles, the Family Division 2 of the Seoul High Court recently issued a decision to correct the ruling and served certified copies of the correction decision on both parties involved in the case.

In the appellate trial, the court calculated the value of Daehan Telecom (predecessor of SK C&C) at 8 won per share when Choi acquired it in November 1994, 100 won per share in May 1998 just before the death of late Chairman Choi Jong-hyeon, and 35,650 won per share in November 2009 when SK C&C was listed. Accordingly, it determined the late Chairman Choi's contribution to the company's growth as 12.5 times and Chairman Choi's contribution as 355 times.

In response, Choi's side argued on the 17th that the value of Daehan Telecom shares in 1998 was 1,000 won per share, not 100 won, and pointed out that "the court, based on erroneous figures, underestimated the portion Choi inherited and effectively branded him a 'self-made businessman' who founded the company."

The panel appears to have subsequently revised the ruling documents after accepting this argument from Chairman Choi's side.

The correction increases the late Chairman Choi's contribution from 12.5 times to 125 times, and conversely reduces Chairman Choi's contribution from 355 times to 35.6 times.

However, the court stated that even if the contribution ratios change, the outcome does not change, and maintained the order for Choi to divide property worth 1.38 trillion won to Roh.

Choi's side, which has indicated it will appeal to the Supreme Court of Korea against the appellate court's correction order, stated, "Because the court misjudged the contribution based on errors, this is not a matter that can be resolved by simply correcting numbers."

Legal circles cite a Supreme Court of Korea precedent: "If there was a calculation error in assessing damages, it falls under correction of the ruling, but if the erroneous calculation was used as the basis for comparative negligence, the error affects the outcome and constitutes grounds for reversal."

Choi's side stated, "This is a case where the substantive content of the ruling based on erroneous calculations must be re-evaluated, so we are reviewing legal procedures to challenge the court's simple correction."

In contrast, Roh's side stated, "That part is only one of the arguments for the enormous increase in SK C&C's stock value; the fact that the stock value achieved a massive increase cannot be denied, and the conclusion is unaffected."