South Korea has recorded its largest-ever divorce asset award after a Seoul court ordered video game tycoon Kwon Hyuk-bin to pay more than 2 trillion won ($1.5 billion) to his former wife.
The Seoul Family Court granted Kwon’s divorce from his ex-wife, surnamed Lee, and ordered him to transfer a 35% stake in Smilegate worth about 2.5 trillion won, along with 65 billion won in cash, the court said on Wednesday.
The settlement surpasses the previous record of 944 billion won, awarded in the divorce case involving SK Group Chairman Chey Tae-won and his former wife, Roh Soh-yeong.
Kwon founded Smilegate in 2002 and turned it into one of South Korea’s most successful video game companies.
Lee filed for divorce in November 2022 and sought half of Kwon’s stake in Smilegate Holdings, now known as Smilegate, according to local media.
She argued that she contributed to the company’s founding and early management, while also supporting its growth indirectly through domestic work. She therefore claimed she was entitled to half of Kwon’s stake.
A court spokesperson said the marriage had broken down beyond repair after considering the circumstances surrounding the couple’s prolonged conflict and the prospects for reconciliation.
The court found that “both sides bore equal responsibility for the breakdown of the marriage” and granted the divorce. However, it rejected Lee’s claim for damages.
Kwon is known to have argued that Lee was neither a co-founder nor involved in the company’s management. He reportedly opposed the divorce, according to local reports.
Local media reported that the court valued Kwon’s assets at as much as 8 trillion won.
The case comes as another high-profile South Korean divorce battle continues to attract attention.
Chey appealed in August against a ruling ordering him to pay about $666 million to Roh.
In July, the Seoul High Court ruled that Roh was entitled to a cash payout worth about one-third of the couple’s marital assets, including Chey’s shares in SK, citing her role in the family and support for SK Group activities.
Chey’s appeal has sent the case to the Supreme Court.
Analysts say the appeal could prolong the closely watched legal battle, which has attracted further attention because of Chey’s control of SK Group as the AI boom drives up the value of its chip assets.
