SK chair’s divorce shows South Korean chaebol's limits

Significance

The dispute is the latest in a series of alleged corruption cases, though the court’s acceptance that SK prospered due to political favouritism is a first in Seoul.

Impacts

• Chey remains group chairman despite having twice been jailed for financial malfeasance and will probably deflect hostile bids as before.
• SK’s performance may mirror Samsung’s issues during its chairman Lee Jae-yong’s legal travails, which let SK pull ahead in high-end chips.
• Despite SK’s semiconductor success, Chey’s case exemplifies governance concerns which contribute to underperformance in equity markets.