SK Group Chairman Choi Tae-won and Art Center Nabi Director Noh So-young will face each other in court on the 15th for the first time in two years and two months. Since the Supreme Court remand, it is effectively the ‘day of destiny’ to decide the scale of the property division, the key issue in the divorce case.

The Seoul High Court Family Division 1 (Presiding Judge Lee Sang-ju) will hold the second mediation session on the 15th in the remand trial of the divorce and property division suit between Choi and Noh. Unlike the first session, when only Noh appeared, both Choi and Noh are expected to attend this time, drawing attention to the direction of the proceedings. It will be the first time the two face each other in court since April 2024, the final hearing date in the appeal. In this mediation, unlike the first session that merely confirmed positions, fierce arguments are expected over the specific size, method, and standards of the property division.

In particular, the biggest variable in this remand trial is the recent surge in SK shares. The central issue is the ‘reference time point’ for calculating the value for division. Depending on whether the benchmark is ‘April 16, 2024,’ the date the appellate arguments closed, or the date the remand trial arguments close, the size of the assets subject to division could differ by more than threefold. The SK share price, which was around 160,000 KRW during the appeal, has now soared into the 500,000 KRW range. Because the valuation of the stake held by Chairman Choi changes astronomically depending on the reference time point, neither side is likely to yield an inch.

The core arguments of both sides still run in parallel. The side representing Choi maintains that the stake, inherited from his forebears, is ‘separate property’ and should be excluded from division. The side representing Noh counters that, having contributed to the group's growth for decades through household management and spousal support, it should be recognized as marital property.

Earlier court rulings also diverged on this point. The first-instance court deemed the SK stake to be separate property of Choi and excluded it entirely from division. It recognized only about 130 billion KRW in assets such as real estate and time or demand deposits as divisible, and ordered that 66.5 billion KRW in cash be paid to Noh, reflecting a 40% contribution.

In contrast, the appellate court found that slush funds of former President Roh Tae-woo, Noh's father, had flowed into SK and, recognizing Noh's spousal support, included SK shares in the marital property. As a result, the property subject to division ballooned to about 4 trillion KRW, and Noh's division ratio was set at 35%, with 1.3808 trillion KRW in cash ordered as the property division amount.

However, last October the Supreme Court sent the case back to the Seoul High Court, stating, “Even if former President Roh's slush funds were delivered, they constitute bribes illicitly raised and therefore cannot be considered as Noh's contribution.” The 2 billion KRW in consolation damages imposed by the appellate court has already been finalized, but the core property division amount will be set again in this remand trial.

If the panel keeps SK shares as property subject to division and uses the conclusion date of the remand trial as the benchmark, the outcome could favor Noh. Even if Noh's percentage is reduced significantly from the appellate 35%, the effect of the share price surge could push the actual amount she receives from the hundreds of billions of KRW into the trillion-KRW range.

For this reason, many in legal circles expect Choi's side to focus on securing a settlement in mediation rather than awaiting a verdict in the remand trial. If the case proceeds to a final ruling, the recent surge in the share price could be reflected as is in the valuation, fixing an unexpectedly astronomical division amount. Depending on the outcome, SK Group's governance structure and control could also shift. Choi's side is reportedly adhering to a cash division, saying, “SK shares cannot be handed over.” Even if a division amount of several hundred billion KRW or more is finalized through future mediation or judgment, the foremost task for Chairman Choi and SK Group will be to establish a precise financing plansuch as selling stakes in unlisted affiliates or taking out stock-backed loanswithin a range that does not unsettle the governance structure.

Attention is focused on whether the two, sitting down face to face after two years, will find common ground through mediation or continue their legal battle.