Seoul (AFP) – A Seoul court on Wednesday ordered South Korean video game tycoon Kwon Hyuk-bin to pay more than 2 trillion won ($1.5 billion) in a divorce settlement, the largest asset division ever awarded in the country. The amount surpasses the 944 billion won awarded in the divorce settlement between SK Group Chairman Chey Tae-won — whose business also owns chip giant SK hynix — and his ex-wife, Roh Soh-yeong.
Kwon founded Smilegate in 2002 and has built it into one of the most successful gaming companies in South Korea. The Seoul Family Court granted the divorce and ordered Kwon to transfer a “35-percent stake in Smilegate, worth about 2.5 trillion won, and pay 65 billion won in cash”, the court said. Kwon’s ex-wife, surnamed Lee, filed for divorce in November 2022, seeking 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 court concluded that the “marriage had broken down beyond repair after considering the circumstances behind the couple’s prolonged conflict and the prospects for reconciliation”. The court said “both sides bore equal responsibility for the breakdown of the marriage” and therefore granted the divorce but rejected Lee’s claim for damages, she added.
Kwon is known to have argued that Lee was neither a co-founder nor involved in the company’s management, and reportedly opposed the divorce, according to local reports. The court valued Kwon’s assets at as much as eight trillion won, local media reported.
Kwon’s case comes after Chey, of SK Group, appealed in August a court ruling 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 activities. Chey’s appeal sent the case back to the Supreme Court.
Analysts say the appeal could extend a closely watched legal battle that has drawn attention to Chey’s control of SK Group, as the AI boom boosts the value of its chip assets.
© 2024 AFP
