Seoul: A Seoul court has mandated South Korean video game magnate Kwon Hyuk-bin to pay over $1.5 billion (two trillion won) in a divorce settlement, marking the most substantial asset division awarded in the nation.
According to TRTworld.com, this amount surpasses the previous record of $666 million (944 billion won) awarded in the divorce settlement between SK Group Chairman Chey Tae-won and his former wife, Roh Soh-yeong. Kwon, who established Smilegate in 2002, has grown it into one of South Korea's leading gaming companies.
The Seoul Family Court granted the divorce and directed Kwon to transfer a 35 percent stake in Smilegate, valued at approximately $1.9 billion (2.5 trillion won), in addition to paying $48.8 million (65 billion won) in cash. Kwon's ex-wife, referred to as Lee, filed for divorce in November 2022, seeking half of Kwon's stake in Smilegate Holdings, now known as Smilegate.
Lee contended that she had played a significant role in the company's founding and early management, and contributed indirectly through domestic work, thus deserving half of Kwon's stake. A court spokesperson noted that the marriage had irreparably broken down after evaluating the circumstances of the couple's prolonged conflict and the possibility of reconciliation.
The court determined that both parties were equally responsible for the marital breakdown, granting the divorce but rejecting Lee's claim for damages. Kwon, on the other hand, reportedly opposed the divorce, arguing that Lee was neither a co-founder nor involved in the company's management.
Local media reported that the court assessed Kwon's assets to be as much as eight trillion won. This ruling follows Chey's appeal of a court decision in August, ordering him to pay $666 million to his former wife, Roh.
The Seoul High Court previously ruled in July that Roh was entitled to a cash payout equivalent to about one-third of the couple's marital assets, including Chey's shares in SK, acknowledging her contributions to the family and support for SK Group's activities. Chey's appeal has now escalated the case to the Supreme Court.
Analysts suggest that the appeal could extend the high-profile legal battle that has captured attention due to Chey's influence over SK Group, particularly as the artificial intelligence surge enhances the value of its chip assets.