A historic ruling by a South Korean court has mandated that Kwon Hyuk-bin, a prominent figure in the gaming industry, pay his former spouse a staggering 2.55 trillion won (equivalent to $1.87 billion) in what is now recognized as the largest divorce settlement in South Korean history.
Kwon, who is the founder of Smilegate, the nation’s third-largest video game company, has an estimated net worth of around $3 billion, according to Bloomberg. The court’s decision requires him to transfer a 35% stake in Smilegate, valued at approximately 2.5 trillion won, to his ex-wife, Lee Hwa-jin. In addition to the stock transfer, Kwon is obliged to pay her a further 65 billion won in cash.
Details of the Divorce Settlement
This settlement eclipses the previous record, where businessman Chey Tae-won was ordered to pay his ex-wife 944 billion won. Lee’s legal team had initially sought a 50% share in Smilegate, arguing that she played a significant role in financing the company during its inception.
Kwon and Lee’s marriage began in 2001, just prior to Kwon establishing Smilegate, which is renowned for hit titles like CrossFire and Lost Ark. Lee emphasized her contributions to the family, including over two decades dedicated to raising their children and managing their household. Conversely, Kwon contended that Lee had neither invested in nor been involved in the operations of the company.
Legal Proceedings and Future Implications
Earlier this year, Smilegate had publicly stated that all initial investments were made solely by Kwon. A spokesperson for the company refrained from discussing the personal matters of its major shareholder, affirming their commitment to maintaining normal business operations.
Both Kwon and Lee have the option to contest the court’s ruling. In a related case earlier this year, Chey Tae-won was initially ordered to pay a substantial sum to his ex-wife, but that decision was subsequently overturned by the Supreme Court due to a miscalculation in the valuation of their joint assets, prompting a review of the case.
