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

Written by Joyce Lee

SEOUL (Reuters) – South Korea's SK Group Chairman Chi Tae-won said on Monday the group would prevent the outcome of his latest ruling on a divorce push from leaving SK companies vulnerable to a hostile takeover or other problems.

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

He told reporters on Monday that Chi is appealing the ruling to the Supreme Court.

“There are areas where we need to prevent it from developing into hostile takeovers or crises like that, but I think we have enough capacity to prevent them,” Chi said.

In a surprise appearance before the press, he bowed deeply and apologized to the public for causing concern over personal matters, adding that he would continue to carry out his administrative duties to contribute to the national economy.

Chey owns 17.7% of the holding company SK Inc and controls SK Hynix, the world's second-largest memory chip maker, and other SK subsidiaries through his stake in SK Inc.

SK Inc shares jumped after the Supreme Court ruling, as investors bet that Chi may have to sell some of his stake in order to raise money, if the Supreme Court confirms the ruling.

However, analysts say Chi may sell his holdings in non-core subsidiaries or take out loans to finance his divorce payments, so as not to affect his control of the group.