Chey Tae-won sells SK Inc. shares for the first time since 2015 to fund a 944 billion won divorce award

Divide 944 billion won by 1,653,924 shares and Chey's average price comes to about 571,000 won a share ^[1]. The block deal is about 58% of that money and the swap about 42% ^[2], and the two legs do different jobs. The block hands shares and their price risk to new owners, who, SK said, bought after weighing its business competitiveness and medium- to long-term growth potential ^[9]. The swap hands over shares but leaves the price risk with Chey ^[10].

Under the swap, gains and losses are settled between Chey and the securities firms according to SK's future share price, so he keeps sharing in the upside for a set period, according to SK ^[10]. The settlement runs both ways. If SK rises over the term, the 1,653,924 shares end up paying him more than 944 billion won; if it falls, he owes the securities firms the shortfall on that slice ^[1][10].

SK said the structure was designed to minimise market impact, such as a drop in its share price ^[10]. As described, neither leg puts stock through the exchange. If the block buyers hold and the swap is rolled over, this sale adds no SK stock to the market. If the swap ends and the securities firms sell, about 400 billion won of stock arrives later ^[8]. SK did not disclose the swap's length, according to the reported filing ^[10].

Chey's holding falls to 11,321,548 shares ^[2], or 15.49% in the regulatory filing Reuters cited, and he stays the largest shareholder in SK Inc., the holding company above chipmaker SK Hynix ^[16]. SK says the related-party block of 22.9% ^[3] stays above 30% on a voting-share basis ^[6]. For 22.9% of all shares to exceed 30% of the votes, voting shares must be under 76.3% of the total (22.9 divided by 0.30), so more than 23.7% of SK's shares are non-voting ^[3].

The court's 944 billion won is about 68% of the 1.38 trillion won set on appeal in 2024, or 436 billion won less ^[4]. SK said the share change was intended "to meet personal funding needs related to the asset division litigation with Noh." ^[5] (Reuters spells the surname Roh ^[14].) According to Seoul Economic Daily, it is Chey's first genuine sale, as distinct from a transfer among related parties, since SK set up its holding structure in 2015 ^[4].

SK is keeping its own plans unchanged. The company said it will pursue its existing growth strategy, investment plans and shareholder value policies ^[17]. Chey said he will continue to focus on responsible management and on raising SK's corporate value ^[11]. In my view this sale adds close to nothing to the stock available on the market in the near term. The open item is the swap, where price risk on 400 billion won still sits with the chairman ^[10]. That view is wrong if the swap proves short and the securities firms sell at expiry, or if the block buyers resell within months.