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The Seoul Family Court on Wednesday ordered Kwon Hyuk-bin to transfer a 35 percent stake in Smilegate valued at roughly 2.5 trillion won together with an additional 65 billion won in cash to his ex-wife Lee Hwa-jin as part of their divorce settlement according to the ruling. The court valued Kwon’s total holdings in the firm at approximately 7.1 trillion won and determined that Lee should receive 35 percent of the marital assets while Kwon retains the remaining 65 percent. Yonhap News Agency reported that the full award totals about 2.55 trillion won or $1.87 billion making it the largest property division ever recorded in a South Korean divorce case. The judgment also granted the divorce after finding the marriage had irretrievably broken down with both parties sharing equal responsibility for its collapse while rejecting Lee’s request for alimony.
Lee filed for divorce in November 2022 after the couple had lived separately since 2020 according to multiple local outlets including The Korea Herald. She had initially sought half of Kwon’s stake in the company arguing that she contributed to its early financing and served in roles such as director and chief executive during its formative years. The court acknowledged her efforts in raising their children and managing the household for more than two decades while also crediting her involvement in the business startup phase. Kwon had opposed the divorce maintaining that he bore no responsibility for its breakdown but the judges concluded restoration of the relationship was not possible.
This settlement more than doubles the previous record of 944 billion won awarded to Roh Soh-yeong in her divorce from SK Group Chairman Chey Tae-won earlier in July according to Reuters and Yonhap News Agency. In that case which local media had dubbed the divorce of the century the appellate court ultimately set a one-third share for the ex-wife after the Supreme Court rejected consideration of certain disputed funds. Bloomberg data places Kwon’s net worth at around $3 billion a figure that underscores the scale of assets at stake in the Smilegate proceedings which had seen valuations of the company equity reach as high as 8 trillion won during earlier appraisals reported by ChosunBiz.
Smilegate ranks as South Korea’s third-largest video game company and remains wholly owned by Kwon until the ruling is finalised according to the BBC and The Korea Times. The firm is best known for developing the first-person shooter CrossFire which has enjoyed global success and the action role-playing game Lost Ark that has built a substantial international player base. Industry observers noted that the transfer of a 35 percent stake in kind rather than a cash equivalent will end Kwon’s sole ownership and potentially grant Lee a significant voice in management decisions at the unlisted firm.
The ruling arrives amid broader scrutiny of asset divisions in South Korea’s family-owned conglomerates where courts have increasingly recognised spousal contributions both direct and indirect to business growth a shift evident in both the Smilegate and SK Group cases. Lee’s legal team had emphasised her public activities and household support as factors that helped build company value during the marriage which lasted from 2001 until the recent proceedings. Neither Kwon nor Lee immediately indicated whether they would appeal the decision according to The Korea Herald leaving open the possibility that the record award could still face further legal challenges before becoming final.
