A Seoul court on Wednesday ordered South Korean video game tycoon Kwon Hyuk-bin to pay more than $1.5 billion (two trillion won) in a divorce settlement, marking the largest asset division ever awarded in the country.
The amount surpasses the $666 million (944 billion won) awarded in the divorce settlement between SK Group Chairman Chey Tae-won, whose conglomerate owns chipmaker SK hynix, and his former wife Roh Soh-yeong.
Kwon founded Smilegate in 2002 and built it into one of South Korea’s most successful gaming companies.
The Seoul Family Court granted the divorce and ordered Kwon to transfer a 35 percent stake in Smilegate, worth about $1.9 billion (2.5 trillion won), and pay $48.8 million (65 billion won) in cash, the court said.
Kwon’s former 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 had contributed to the company’s founding and early management, as well as indirectly through domestic work, and was therefore entitled to half of Kwon’s stake.
A court spokesperson said the marriage had “broken down beyond repair” after the court considered the circumstances behind the couple’s prolonged conflict and the prospects for reconciliation.
The court found that “both sides bore equal responsibility for the breakdown of the marriage” and granted the divorce but rejected Lee’s claim for damages.
Kwon reportedly opposed the divorce and argued that Lee was neither a co-founder nor involved in the company’s management.
The court valued Kwon’s assets at as much as eight trillion won, according to local media.
The ruling comes after Chey appealed a court decision in August ordering him to pay $666 million to his former wife Roh.
The Seoul High Court ruled in July that Roh was entitled to a cash payout worth about one-third of the couple’s marital assets, including Chey’s shares in SK, citing her role in the family and support for SK Group’s activities.
Chey’s appeal sent the case to the Supreme Court.
Analysts say the appeal could prolong a closely watched legal battle that has drawn attention to Chey’s control of SK Group as the artificial intelligence boom boosts the value of its chip assets.
