South Korean AI Billionaire’s Divorce Settlement Reduced

A South Korean billionaire who was embroiled in a high-profile divorce case will now pay about $645 million to his ex-wife, rather than the nearly $1 billion she initially sought, as per a recent court ruling.

This decision might finally conclude what’s often referred to as the “divorce of the century” in South Korea, a decade-long legal saga involving a billionaire’s affair, connections to a former president’s family, and significant financial disputes amid the booming AI industry.

Choi Tae-won, who is 65 and serves as the chairman of SK Group, largely built his wealth thanks to the AI surge, particularly with the rise in stock prices of SK Hynix, a major supplier to Nvidia.

His assets were previously estimated at around $5 billion, and the court proceedings arose after his ex-wife, Noh So-young, sought half of his wealth. Instead, the appeals court decided that she would receive approximately a third of what Choi’s assets were valued at prior to the stock surge linked to the AI explosion.

Choi’s legal team is currently evaluating this latest ruling and hasn’t ruled out the possibility of further appealing to South Korea’s Supreme Court.

The contentious divorce began following a surprising public admission in 2015. In a letter published in a newspaper, Choi expressed a desire for a “clean end” to his 27-year marriage and disclosed that he had fallen in love with another woman, with whom he had a child.

This announcement marked a significant turning point, shattering a marriage once hailed as “the marriage of the century” in the country. Choi and Roh, the daughter of the former South Korean President, tied the knot in 1988 at a ceremony at the presidential palace, which was a national spectacle.

Initially, Roh sought to hold her family together and resist the divorce, but eventually shifted her stance, demanding half of Choi’s wealth.

The woman involved in the affair, Kim Hee-young, known as Chloe, is now Choi’s long-term partner. Roh subsequently sued her for the affair; the court found both Choi and Kim accountable for about $1.5 million in damages due to the affair contributing to the marriage’s dissolution.

As the divorce proceedings unfolded, the case delved deeper into the history of the SK Empire, with allegations surrounding financial dealings from the past. Roh’s legal team presented a note believed to have been kept by her mother, which suggested that funds may have been transferred from Choi’s father to bolster the family business. Choi’s attorneys denied these claims, defending the integrity of their business dealings.

This bitter dispute has grown more complex and financially significant as SK Hynix has capitalized on the AI boom, with its memory chips becoming essential to Nvidia’s success, resulting in a significant increase in Choi’s net worth.