This website clearly states that it can.
https://www.lg.com/my/home-audio-systems/lg-SK8
You bought an LG product, so if LG says it can while it can't I would most certainly unbind the purchase agreement because of false advertisement and buy a different soundbar. However, i'm most certain that LG isn't lying about their products capabilities. There must be something going wrong in setup.
Did you check all the connections, and made sure that all HDMI cables are high speed cables that are HDMI 2.0 compatible? Also did you follow the manufacturers instructions to connect everything up?
If you connect the ATV to your TV directly and pass the sound to your soundbar over ARC, you must connect the soundbar to the HDMI out (arc) port of your tv and the HDMI IN port of the soundbar. But if you connect The ATV to the soundbar and only pass the 4k video stream to the TV, you must use the HDMI OUT port on the soundbar, and the HDMI IN (arc) port to connect the soundbar to your TV! Maybe that helps?