South Korean court awards billionaire’s wife $1.8 billion divorce settlement

A South Korean court has ordered the founder of gaming company Smilegate, Kwon Hyuk-bin, to transfer shares and cash worth about 2.55 trillion won ($1.8 billion) to his wife following their divorce, making it the country’s largest disclosed marital property settlement.

The Seoul Family Court granted the divorce petition filed by Kwon’s wife, identified by her surname Lee, while rejecting her claim for damages. The court ruled that Lee should receive 35 percent of Kwon’s Smilegate shares, while Kwon retains 65 percent. The shares awarded to Lee are valued at approximately 2.49 trillion won, with a further 65 billion won to be paid in cash. 

The court considered Lee’s involvement in Smilegate during its early development. She had held an interest in the company, served as a director and CEO during its early years, and was also responsible for household duties and raising the couple’s children for an extended period. Kwon, meanwhile, was credited with having played the decisive role in the company’s growth through his management and business decisions. 

The ruling follows a marriage that lasted more than two decades and could have implications for Smilegate, which owns businesses behind popular games including Crossfire and Lost Ark. Because most of Kwon’s wealth is tied up in privately held shares, the court opted for a combination of shares and cash rather than requiring the entire settlement to be paid in cash. The ruling is at first instance and could still be appealed.