SK Group Chairman Chey Tae-won is selling a slice of his stake in SK Inc, the group's holding company, to a fund linked to Michael Dell's family office. The move is part of a broader effort to raise cash for his divorce settlement, according to regulatory filings.
A filing on Wednesday showed that Chey agreed to sell a 1.34% stake in SK Inc to DFO Public Investments, a Delaware-based fund tied to Dell's family office. The deal is valued at 544 billion won, or about $406 million.
Part of a larger cash-raising plan
The sale is not an isolated transaction. Earlier this month, SK Inc disclosed that Chey planned to sell 1.65 million shares, or 2.26% of the company, for 944 billion won. That disclosure, reported by Reuters, said the proceeds would help fund his divorce settlement.
The latest filing breaks down the buyers: DFO Public Investments will purchase 972,493 shares (1.34%), while Korea Investment & Securities, a South Korean brokerage, will buy 681,431 shares (0.94%) for 400 billion won. The earlier filing had referred to the remaining shares being sold to an unnamed buyer, which now appears to be DFO.
Chey's divorce from Roh Soh-yeong, a former first lady of South Korea, has been one of the most closely watched legal battles in the country's corporate world. The settlement, which was finalized in 2024, ordered Chey to pay a record amount, reportedly in the hundreds of billions of won. To meet that obligation, he has been selling down his holdings in SK Inc, the entity that controls the sprawling SK Group, which spans semiconductors, energy, and telecommunications.
What it means for investors
For everyday investors, the key takeaway is that a large shareholder is reducing his stake in a major conglomerate. That can sometimes signal a lack of confidence, but in this case, the sale is driven by personal financial obligations rather than a view on the company's prospects.
Still, the sale increases the supply of SK Inc shares in the market, which can put downward pressure on the stock price in the short term. It also changes the ownership structure slightly, with a new institutional investor—DFO Public Investments—coming in as a shareholder. That could be seen as a positive, as it brings in a well-known family office with deep pockets.
For those holding SK Inc shares, the immediate impact is likely limited. The stake being sold is relatively small, and the buyer is a long-term investor. But it's worth watching whether Chey sells more shares in the future, as he may need additional funds to complete the divorce payment.
Broader market context
The news comes as South Korean stocks have been volatile. The KOSPI recently snapped a five-day losing streak as chip stocks rebounded, but concerns about AI spending and global inflation persist. SK Inc is a major component of the KOSPI, and its performance is closely tied to the semiconductor cycle, given SK Hynix, a key affiliate, is one of the world's top memory chip makers.
Investors in Asian tech stocks have been questioning the payoff from AI investments, which has weighed on chipmakers. Meanwhile, chip stocks have shown signs of rebounding, but the outlook remains uncertain.
For those looking at SK Inc as a potential investment, the divorce-related selling is a factor to consider, but it's not the only one. The company's fundamentals, its exposure to the memory chip market, and broader economic conditions will likely have a bigger impact on the stock's long-term trajectory.
What to watch next
Investors will be watching for any further filings from Chey or SK Inc regarding additional share sales. They'll also be keeping an eye on how DFO Public Investments exercises its new stake—whether it remains a passive investor or takes a more active role.
For now, the sale is a notable but not earth-shattering event. It's a reminder that even the largest corporate leaders sometimes need to liquidate assets for personal reasons, and that such moves can create opportunities for other investors to step in.
