Key facts
- Kwon Hyuk-bin, founder of Smilegate, must pay his ex-wife 2.55 trillion won ($1.87 billion).
- The settlement includes a 35% stake in Smilegate, valued at approximately 2.5 trillion won.
- An additional 65 billion won in cash must be paid.
- This is the largest divorce settlement in South Korean history.
- The ex-wife, Lee Hwa-jin, claimed she helped finance the company at its founding.
A South Korean court has ordered gaming tycoon Kwon Hyuk-bin to pay his ex-wife, Lee Hwa-jin, 2.55 trillion won (approximately $1.87 billion) in assets and cash. This ruling establishes a new record for the largest divorce settlement in the country's history.
The settlement mandates the transfer of a 35% stake in Smilegate, South Korea's third-largest video game company founded by Kwon, valued at about 2.5 trillion won, to Lee. Additionally, Kwon must pay 65 billion won in cash.
Lee's legal team argued that she contributed to financing Smilegate at its inception and spent over two decades managing their household and raising their children. Kwon, whose net worth is estimated at $3 billion by Bloomberg, countered that Lee did not invest in or work for the company. Smilegate has stated it will not comment on the major shareholder's personal matters.
This award significantly surpasses the previous record of 944 billion won, which tech titan Chey Tae-won was ordered to pay his ex-wife. However, that prior ruling was later invalidated by the Supreme Court due to a calculation error and is subject to review.
Discussion