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.