Smilegate founder ordered to pay record $1.5bn divorce

A Seoul court on Wednesday ordered South Korean video game tycoon Kwon Hyuk-bin, founder of Smilegate, to transfer a 35 percent stake in the company and pay 65 billion won in cash in a divorce settlement worth more than 2 trillion won, or about $1.5 billion.

The Seoul Family Court said the Smilegate stake was worth about 2.5 trillion won. The award surpassed the 944 billion won settlement between SK Group Chairman Chey Tae-won and Roh Soh-yeong, making it the largest asset division awarded in South Korea.

Kwon founded Smilegate in 2002 and built it into one of South Korea's most successful gaming companies. His ex-wife, surnamed Lee, filed for divorce in November 2022 and sought half of his stake in Smilegate Holdings, now Smilegate, according to local media.

Lee argued that she contributed to the company's founding and early management, as well as through domestic work. Kwon is known to have argued that Lee was not a co-founder and was not involved in management, and local reports said he opposed the divorce.

A court spokesperson said the marriage had broken down beyond repair and that both sides bore equal responsibility. The court granted the divorce but rejected Lee's damages claim.

Local media reported that the court valued Kwon's assets at as much as eight trillion won. Chey's case returned to the Supreme Court after he appealed a ruling ordering him to pay $666 million to Roh.