A Seoul court granted the wife of Smilegate founder Kwon Hyuk-bin a divorce Wednesday and awarded her 35 percent of his shares in the gaming company plus 65 billion won in cash.
The 2.55 trillion won ($1.9 billion) property division would be the largest ever reported in South Korea if upheld.
The Seoul Family Court valued Kwon’s Smilegate shares at about 7.1 trillion won. It ordered him to transfer 35 percent of the stock to his wife, surnamed Lee, in kind rather than pay its value in cash. The stake is worth approximately 2.49 trillion won.
Kwon was also ordered to pay Lee 65 billion won in cash to cover the remaining balance of the property division.
The transfer, if finalized, would end Kwon’s sole ownership of the unlisted gaming company and give Lee a substantial say in its management.
Lee filed for divorce in November 2022, ending the couple’s more than two decades of marriage. Kwon opposed the divorce.
“After considering how the conflict between the parties developed and the possibility of restoring their relationship, the court concluded that the marriage had broken down beyond repair,” the court said.
The court found both parties equally responsible for the breakdown of the marriage. It granted Lee’s divorce petition but rejected her claim for damages.
Lee had sought half of Kwon’s Smilegate stake, arguing that she contributed to the company’s establishment and growth as well as to the accumulation of the couple’s wealth.
She said she held a 30 percent stake during Smilegate’s early years and had served as its CEO and a registered director. She also cited more than 20 years spent raising their children and managing the household.
Kwon argued that Lee had neither invested in nor worked for the company and therefore could not be regarded as a co-founder. He also maintained that he was not responsible for the breakdown of the marriage.
Neither Kwon nor Lee immediately said whether they would appeal. Smilegate did not immediately comment on the ruling.
Award eclipses previous record
If upheld, the property division would far exceed the previous record of 944 billion won awarded to Roh Soh-yeong, director of Art Center Nabi, in her divorce from SK Group Chairman Chey Tae-won.
Chey appealed the July 24 ruling, which ordered him to pay Roh in cash while allowing him to retain his shares in SK Inc.
Kwon and Lee married in 2001, a year before he founded Smilegate. He became chair of the company’s Hope Studio foundation in 2012 and was appointed Smilegate’s chief visionary officer in 2020.
Smilegate has grown into one of South Korea’s largest gaming companies, with businesses spanning game development, publishing, investment and entertainment. Its best-known titles include the online role-playing game Lost Ark and first-person shooter CrossFire.
forestjs@heraldcorp.com
