Seoul Court Orders Record Smilegate Divorce Asset Division
Seoul Court Orders Record Smilegate Divorce Asset Division
Anonymous
Key Points
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Lee filed for divorce in November 2022, about two years after the couple began living separately. She argued that she had once held a 30 percent founding stake, served as a registered director and contributed more than two decades of domestic work; Kwon disputed that she had invested in or worked for Smilegate.
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Smilegate’s growth was closely associated with the success of “CrossFire” in China, which helped turn the company into a business with sales reaching trillions of won. Kwon later launched “Lost Ark” and the company also developed “Epic Seven.”
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The ruling could create practical financing pressures for Kwon because potential ways to raise cash include personal funds, dividends, stock-backed borrowing or selling part of his stake. Each option carries complications, including dividend procedures and taxes, loan interest and collateral requirements, or the introduction of new shareholders through a sale.
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Kwon founded Smilegate in 2002 after graduating from Sogang University with a degree in electronic engineering. He became chairman of the affiliated Heemang Studio foundation in 2012 and took the title of chief visionary officer in 2020.
A Seoul court has ordered Smilegate founder Kwon Hyuk-bin to transfer a 35 percent stake in his gaming company and pay about 65 billion won in cash to his estranged wife, Lee—a combined award worth roughly 2.5 trillion won ($1.87 billion) BBC. The ruling marks Reuters South Korea's largest divorce property settlement ever. The court found both spouses shared blame for the marriage's collapse and rejected Lee's separate claim for ongoing alimony payments.
Kwon, who founded Smilegate in 2002 and built it into a gaming powerhouse through hit titles like "CrossFire" in China, disputes Lee's claims and has the right to appeal Reuters. Because most of his wealth is locked in the privately held company's difficult-to-liquidate shares, the ruling could reshape Smilegate's ownership structure and create serious cash-raising pressures, though it does not automatically force an IPO or drain company funds.
Wife's Two Decades of Unpaid Work Win Court Recognition
Lee filed for divorce in November 2022, roughly two years after the couple separated Reuters. She claimed she once held a 30 percent founding stake, served as a registered director, and contributed more than 20 years of domestic labor to build the company. Kwon contested these claims, arguing she had never invested in or worked for Smilegate.
The Seoul Family Court sided with Lee on the core issue: both her financial and domestic contributions deserved recognition in the settlement Reuters. Judges determined her unpaid work and sacrifice justified a substantial share of company value, even though they rejected her bid for future alimony support.
Smilegate's Trillion-Won Rise Built on Chinese Gaming Success
Smilegate exploded into a major player after "CrossFire" became a smash hit in China, turning the company into a multi-trillion-won business BBC. Kwon later launched "Lost Ark," and Smilegate also developed the popular mobile game "Epic Seven." These titles transformed what started as a small indie studio into a gaming giant with regional clout across Asia.
The company's growth directly tied Kwon's personal wealth to its success. Because Smilegate remains privately held, nearly all his assets sit in company shares—making them hard to convert to cash without drastic measures.
Cash Crunch Looms as Kwon Weighs How to Pay
To satisfy the award, Kwon faces limited and complicated options: use personal savings, collect company dividends, borrow against his stock, or sell part of his stake to new investors Reuters. Each path carries risks. Dividends involve corporate procedures and tax bills. Loans demand interest payments and collateral pledges. Selling stakes introduces outside shareholders and dilutes his control.
Kwon's Path From Engineer to Gaming Executive
Kwon graduated from Sogang University with a degree in electronic engineering before launching Smilegate in 2002 BBC. He took the title of chief visionary officer in 2020 and chairs the affiliated Heemang Studio foundation. The court's ruling on his personal finances now threatens the clean ownership structure that has allowed him to steer the company's creative direction unchecked for over two decades.
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