Choi Taewon to Sell 944 Billion Won Worth of SK Shares... SK Inc. Says "No Impact on Management Control" (Comprehensive)

Chairman Remains Largest Shareholder Despite Sale of 2.3% Stake
Voting Rights Held by Related Parties Drop from 33.5% to 30.5%
SK Inc.: "Limited Impact on Management Stability, No Special Measures Planned"

Choi Tae-won, Chairman of SK Group, will sell part of his shares in SK Inc. to secure 944 billion won for the division of property to Noh So-young, Director of Art Center Nabi. After the sale, Chairman Choi's stake will decrease to the 15 percent range, but SK Inc. expects the impact on management control and stability to be limited.

Chae Won Choi, Chairman of SK Group. Photo by Yonhap News Agency

Even after the sale, Chairman Choi will retain his position as the largest shareholder of SK Inc. Including shares held by parties with special interests, his voting-right stake will drop from the current 33.5 percent to 30.5 percent, but will still remain above 30 percent.

A representative from SK Inc. told The Asia Business Daily on October 2, "From a voting rights perspective, his stake will remain above 30 percent even after the sale," adding, "This is more than enough to maintain management control." The representative further explained, "We don't expect any significant impact," noting that the company is not preparing any specific countermeasures in response to this change in stake.

Regarding this transaction, the representative commented, "It should be interpreted as a personal matter that will be handled individually without affecting the market or company management."

SK Inc. announced on October 2 that Chairman Choi intends to sell 1,653,924 common shares he holds. The total transaction amount is 943,999,930,000 won. According to the disclosure, the purpose of the transaction is "to raise personal funds through the sale of held shares."

The sale will proceed in two separate transactions. Chairman Choi will sell 972,493 shares at 559,387 won per share, for a total of 543,999,940,000 won. The remaining 681,431 shares will be sold at 587,000 won per share, for a total of 399,999,970,000 won. The trades are scheduled to be carried out through off-hour block trading on November 2.

Among these, the 400 billion won transaction will involve a price return swap (PRS) contract. The contract period is three years, and at settlement, the difference between the actual sale price and the reference price will be settled with the counterparty.

If the sale goes as planned, the number of SK Inc. shares held by Chairman Choi will decrease from 12,975,472 to 11,321,548. His stake will drop from 17.76 percent to 15.49 percent, a decrease of 2.27 percentage points.

It is known that, of the property division amount, Chairman Choi does not dispute 700 billion won and is only pursuing legal procedures to obtain a Supreme Court ruling on the remaining 244 billion won. Apart from this share sale, the ongoing legal process will continue.

This content was produced with the assistance of AI translation services.