SEOUL, South Korea — South Korean gaming tycoon Kwon Hyuk-bin, the founder of gaming giant Smilegate, has been ordered to hand over assets worth approximately 2.55 trillion won in what is being described as the largest property division ever awarded in a South Korean divorce case.
The ruling by the Seoul Family Court on September 9 granted the divorce sought by Kwon’s wife, identified in South Korean media as Lee, and ordered a division of assets that includes a massive stake in the gaming company Kwon built into one of South Korea’s biggest entertainment and technology success stories.
The amount has been widely reported internationally as equivalent to roughly US$1.5 billion to US$1.9 billion, depending on the valuation and currency conversion used. Philippine peso estimates also vary with exchange rates, which is why the widely reported P93 billion figure should be treated as an approximate conversion rather than a fixed cash payout.
A Record-Breaking Asset Division
According to South Korea’s Yonhap News Agency, the court ordered Kwon to transfer 35 percent of his Smilegate shares to his wife and pay an additional 65 billion won in cash.
The court placed the total value of the property division at approximately 2.55 trillion won, making it a potential new record for the largest asset division in a domestic divorce case.
That figure surpasses the previous landmark divorce case involving SK Group Chairman Chey Tae-won and his former wife Roh Soh-yeong, whose property settlement reached 944 billion won. However, that separate case remains subject to further legal proceedings, with Chey accepting part of the settlement while contesting the remainder before South Korea’s Supreme Court.
The Biggest Part of the Settlement Isn’t Cash
The most dramatic part of the ruling is the transfer of ownership in Smilegate.
The court ordered Kwon to give Lee 35 percent of his Smilegate shares, which Yonhap reported were valued at roughly 2.4 trillion won. He must also provide 65 billion won in cash.
That means the case is not simply about a billionaire writing a massive check.
It could reshape the ownership structure of one of South Korea’s most successful privately held gaming companies.
Smilegate was founded by Kwon in 2002 and became internationally known through major gaming titles including Crossfire, while its broader portfolio also includes successful games such as Lost Ark and Epic Seven.
Why Did the Court Award His Wife 35 Percent?
Lee filed for divorce in November 2022 and argued that she had contributed to Smilegate’s founding and early development.
Reports from Yonhap and South Korean media said she claimed to have played a role in the company’s early management and founding period, while also contributing to the family through household work and child-rearing.
The court recognized those contributions.
According to reports on the ruling, Lee had previously held shares in the company and had been involved in its early corporate structure. The court also considered her long-term contributions to the household and raising the couple’s children.
However, the court did not award her the 50 percent share she had reportedly sought.
Instead, it divided the relevant marital assets 65 percent to Kwon and 35 percent to Lee, finding that Kwon’s business judgment and management played the decisive role in building Smilegate into a gaming powerhouse.
Marriage Had Broken Down Beyond Repair
The Seoul Family Court concluded that the couple’s marriage had deteriorated beyond repair after years of conflict and separation.
The couple reportedly began living separately in 2020, before Lee filed for divorce two years later.
The court found both parties equally responsible for the breakdown of the marriage and rejected Lee’s separate claim for damages or alimony.
Kwon had reportedly opposed the divorce and disputed claims that Lee should be considered a co-founder of Smilegate.
What Happens to Smilegate Now?
One of the biggest questions surrounding the record ruling is what it could mean for the future ownership and governance of Smilegate.
South Korean media reported that Kwon’s Smilegate holdings account for the overwhelming majority of his wealth. The company shares are privately held and were therefore at the center of the divorce battle.
If the ruling becomes final, Lee’s 35 percent stake could make her a major shareholder in the gaming empire.
However, reports indicate that Kwon would remain the largest shareholder and could retain management control. Even so, such a major ownership shift could create new governance questions and potentially affect future corporate decisions.
A Divorce Case That Could Make South Korean Legal History
The case has attracted international attention not just because of its staggering value but because it highlights how massive corporate fortunes can become central to modern divorce battles.
The court’s decision also sends a significant message about how non-financial contributions may be considered when dividing marital assets, particularly when one spouse claims to have contributed to a company’s early development while also taking responsibility for family and household duties.
For Kwon Hyuk-bin, the founder who turned Smilegate into a multibillion-dollar gaming empire, the court ruling could represent one of the most expensive personal setbacks in South Korean corporate history.
But the story may not be over yet.
The ruling is a first-instance court decision, meaning further legal proceedings or appeals could still affect the final outcome.
For now, however, the Seoul Family Court’s decision has set a new benchmark for divorce settlements in South Korea — and put one of the country’s biggest gaming fortunes at the center of an extraordinary legal battle.
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