Smilegate founder Kwon Hyuk-bin has appealed against a South Korean court ruling ordering him to transfer company shares and cash totalling about 2.55 trillion won ($1.88 billion) to his wife in what would be the largest divorce asset settlement in South Korean history.
Kwon, chief visionary officer of Korean gaming powerhouse Smilegate, filed an appeal against the Seoul Family Court’s ruling on both the divorce and division of assets, according to his lawyers.
“Kwon intends to continue his efforts to restore the marriage as a husband who hopes to preserve his family,” his lawyers said in a statement.
Kwon’s legal team said the lower court had improperly treated circumstances that occurred after the divorce suit was filed — such as the spouse’s refusal to communicate and the couple’s long separation during the litigation — as evidence that the marriage had broken.
“We find it difficult to accept the lower court’s decision,” the lawyers said.
The Seoul Family Court on Sept. 9 ruled in favor of Kwon’s wife, identified by her surname Lee, and ordered Kwon to hand over 35 percent of his Smilegate shares to her, along with 65 billion won in cash. The court estimated Kwon’s Smilegate shares at approximately 7.1 trillion won, and 35 percent would be approximately 2.49 trillion won.
Lee filed for divorce in 2022, ending the couple’s more than two decades of marriage. Kwon opposed the divorce.
Kwon’s side also challenged the court’s assessment of Lee’s contribution to the creation of Kwon’s wealth, which served as the basis for ordering the division of a 35 percent stake in Smilegate
They said evidence presented at the trial showed that Lee had not contributed capital to the company, had no designated workspace and had not worked there.
“The court relied on claims made by the spouse without sufficient supporting evidence and ordered a division of assets that could affect major corporate management decisions, creating significant uncertainty for the company’s future operations,” the lawyers said.
Kwon will ask the appellate court to reconsider the asset division, they added.
sahn@heraldcorp.com
