A South Korean court has delivered a landmark ruling in a high-profile divorce case, ordering Smilegate founder Kwon Hyuk-bin — one of the nation’s wealthiest business magnates — to transfer over 2.55 trillion won ($1.87 billion) in assets to his ex-wife Lee Hwa-jin, setting a new record for the largest divorce settlement in the country’s history.
Kwon, who built South Korea’s third-largest video game developer from the ground up, had held full ownership of Smilegate until Wednesday’s court decision. The ruling requires Kwon to transfer a 35% stake in the gaming firm, valued at roughly 2.5 trillion won, to Lee, alongside an additional 65 billion won in cash compensation. Bloomberg estimates Kwon’s total current net worth at approximately $3 billion.
The massive settlement more than doubles the previous national record of 944 billion won, which was set earlier this year when SK Group chairman Chey Tae-won was ordered to pay his ex-wife. That ruling has since been sent back for lower court review by South Korea’s Supreme Court, which flagged an error in asset valuation that incorrectly inflated the couple’s combined assets.
The legal battle between Kwon and Lee stems from conflicting claims over Lee’s contributions to the gaming company’s early growth. The pair married in 2001, just 12 months before Kwon launched Smilegate, the studio behind global hit titles including the first-person shooter *CrossFire* and action role-playing game *Lost Ark*.
Lee originally sought a 50% stake in Smilegate as part of the divorce settlement. According to reporting from Bloomberg, her legal team argued she provided critical financial support to help Kwon launch the company during its founding phase. She also emphasized that she dedicated more than two decades to raising the couple’s children and managing their household, contributions she says enabled Kwon to focus on growing his business.
Kwon has repeatedly disputed these claims, maintaining that Lee never invested in the company nor contributed to its operations. Earlier this year, Smilegate released an official statement asserting all initial startup capital came from Kwon personally. A company spokesperson declined to elaborate on the personal legal matters of its major shareholder following the ruling, telling South Korea’s *The Chosun Daily* that the business would continue normal operations as usual.
Both sides retain the right to appeal the court’s latest ruling, meaning the legal process may not yet be final.