Tycoon to pay ex-wife $1.87bn in record South Korea divorce settlement

A South Korean court has ruled that gaming tycoon Kwon Hyuk-bin must pay his ex-wife 2.55 trillion won ($1.87 billion) in a record-breaking divorce settlement, setting a new historical precedent in the nation. Kwon, the founder of South Korea's third-largest video game company Smilegate, is among the country's wealthiest individuals, with a net worth estimated at $3 billion by Bloomberg. The company, which was entirely owned by Kwon until recently, is renowned for its popular games such as CrossFire and Lost Ark.

Smilegate's assets, valued at approximately 2.5 trillion won, will be transferred to Kwon's wife, Lee Hwa-jin. Additionally, she will receive an extra 65 billion won in cash. Kwon was also ordered to relinquish a 35% stake in the company. This settlement far exceeds the previous record of 944 billion won, which was imposed on tech entrepreneur Chey Tae-won to his ex-wife.

When filing for divorce, Lee had requested a 50% share in Smilegate, arguing that her contributions to the company's founding and growth were substantial. Her legal team pointed out her role in financing the business during its early stages.

Lee also highlighted her 20-year commitment to raising their children and managing the household. Kwon countered that Lee did not invest or participate in the company's operations. Smilegate has declined to comment on the personal matters of the involved parties, stating that they will continue to manage their affairs as usual. Both parties have the option to appeal the verdict.

In July, tech mogul Chey Tae-won, chairman of the conglomerate SK Group, was also ordered to pay his ex-wife 944 billion won, the largest divorce award in South Korean history until this latest ruling. However, the Supreme Court overturned this decision due to a miscalculation in the valuation of their assets and ordered a review of the case.