South Korean Gaming Mogul Ordered to Hand Over Record $1.87bn in Landmark Divorce Ruling

In a landmark judicial decision that sets a historic precedent for matrimonial litigation in South Korea, a court has ordered prominent video game entrepreneur Kwon Hyuk-bin to pay his former spouse, Lee Hwa-jin, an asset settlement valued at 2.55 trillion won ($1.87 billion; £1.38 billion).

The extraordinary ruling represents the largest divorce award ever granted in the nation's legal history. The outcome significantly alters the ownership structure of one of the country's most profitable entertainment enterprises, marking a monumental legal reallocation of corporate wealth.

Under the detailed terms specified by the court, Ms Lee is set to receive a 35 percent equity stake in Smilegate, a transfer valued at approximately 2.5 trillion won. In addition to the handover of company shares, Mr Kwon was instructed by the bench to provide an additional 65 billion won in direct cash compensation to finalize the division of marital property.

Prior to the court's decision on Wednesday, Smilegate had remained entirely under the exclusive ownership and control of Mr Kwon. The gaming magnate, who ranks among the wealthiest figures in South Korea, holds an estimated personal fortune of $3 billion, according to wealth assessments compiled by Bloomberg.

Mr Kwon built his fortune by establishing and expanding Smilegate, which has grown to become the third-largest video game publisher and development studio in South Korea. The company achieved worldwide commercial success largely through its flagship titles, including the globally popular first-person shooter CrossFire and the expansive action role-playing game Lost Ark.

The timeline of the couple's marriage is closely tied to the foundation and subsequent rise of the gaming giant. Mr Kwon and Ms Lee married in 2001, exactly one year before he formally launched Smilegate in 2002.

When initiating the divorce proceedings, Ms Lee sought an equal split of the corporate empire, formally requesting a 50 percent stake in Smilegate. Legal representatives acting on her behalf argued before the court that she had provided essential financial assistance to support the business during its earliest founding stages, according to Bloomberg.

Alongside her claims of early financial backing, Ms Lee highlighted her substantial domestic contributions throughout the duration of the marriage. She presented evidence that she had spent more than two decades managing the family household and raising the couple's children, thereby supporting the home while the business grew.

Mr Kwon firmly opposed these claims during the legal proceedings, maintaining that his former wife had no rightful entitlement to equity in the gaming company. His defense maintained that Ms Lee had never invested capital into the enterprise, nor had she ever worked for or participated in the corporate operations of the firm.

This position aligned with an official statement issued earlier this year by Smilegate. In that release, the enterprise stated that the entirety of the initial startup capital required to launch the business had been provided solely from Mr Kwon's own resources.

Following the delivery of the court's historic decision, company representatives sought to separate the firm's commercial activities from the legal proceedings. A Smilegate spokesperson declined to comment on the major shareholder's personal affairs, while offering assurances regarding the ongoing management of the business.

In a statement cited by The Chosun Daily, the company affirmed operational continuity following the ruling, stating: "We will continue to faithfully perform our duties as usual." The response was intended to reassure stakeholders that daily operations would proceed unaffected by the impending shift in share ownership.

Despite the definitive nature of the ruling, the legal battle may continue in higher courts. Both Mr Kwon and Ms Lee retain the right to challenge the judgment through the South Korean appeals process.

The massive scale of the settlement far surpasses the nation's previous benchmark for high-stakes divorce litigation. Before Wednesday's ruling, the largest divorce award in South Korean history was established in July, when Chey Tae-won, the chairman of major corporate conglomerate SK Group, was ordered to pay 944 billion won to his ex-wife.

However, that earlier record was subsequently overturned when the Supreme Court of South Korea struck down the ruling. The high court cited an accounting miscalculation that had incorrectly inflated the total valuation of the couple's shared assets, ordering the case to undergo a comprehensive judicial review.

As a result, the 2.55 trillion won judgment against Mr Kwon stands at more than double the previous contested SK Group record. The ruling establishes a new benchmark for high-net-worth divorce settlements in the country, underscoring how courts assess spousal contributions to business empires built during marriage.