Smilegate founder ordered to give wife $1.8 bil. in divorce settlement
Smilegate founder Kwon Hyuk-bin / Yonhap
A Seoul court granted a divorce sought by the wife of Smilegate founder Kwon Hyuk-bin, ordering him to transfer shares and cash worth an estimated 2.55 trillion won ($1.8 billion) to her in one of Korea's largest divorce settlements.
The Seoul Family Court on Wednesday granted the divorce petition filed by Kwon's wife, identified by her surname Lee. However, the court rejected her claim for damages.
Instead, the court set the division of marital assets at 35 percent for Lee and 65 percent for Kwon.
Under the ruling, Kwon must transfer to Lee 35 percent of his shareholdings, valued at about 7.10 trillion won in total. The shares to be transferred are worth approximately 2.49 trillion won. He was also ordered to pay her 65 billion won in cash, bringing the total value of the settlement to about 2.55 trillion won.
The court said the marriage had broken down beyond repair after considering the couple's prolonged conflicts, how those disputes intensified and the possibility of restoring their relationship. It found that both parties bore equal responsibility for the breakdown of the marriage.
The court included Smilegate shares among the assets subject to division. It took into account that Lee had held a stake in Smilegate Entertainment during the company's establishment and growth and had been registered as a director and CEO, as well as the fact that she had been primarily responsible for household duties and raising their children for an extended period.
The court concluded that the shares constituted property accumulated directly or indirectly by the couple during their marriage.
However, the court said Kwon's business acumen and management decisions played a decisive role in Smilegate's growth. It also considered Lee's contributions, the circumstances of their married life and the couple's ages, incomes and financial resources in determining the division ratio.
The court ordered the settlement to be paid through a combination of shares and cash. It said most of Kwon's assets consist of shares in privately held Smilegate companies, meaning he would have to sell some of his stake if the entire settlement were to be paid in cash.
The court also said transferring part of Kwon's stake would not put his control of the company at risk.
Lee was granted parental rights over the couple's minor child. Kwon was ordered to pay 20 million won per month in child support, while visitation was allowed without specific restrictions.
This article from the Hankook Ilbo, the sister publication of The Korea Times, was translated by a generative AI system and edited by The Korea Times.