**Tycoon to Pay Ex-Wife $1.87 Billion in Record South Korea Divorce Settlement**
In a landmark ruling, a South Korean court has ordered gaming mogul Kwon Hyuk-bin to pay his ex-wife, Lee Hwa-jin, a staggering 2.55 trillion won (approximately $1.87 billion or £1.38 billion) in what is now the largest divorce settlement in the country's history. Kwon, the founder of Smilegate, South Korea's third-largest video game company, is one of the wealthiest individuals in the nation, with a net worth estimated at around $3 billion by Bloomberg.
The court's decision, announced recently, mandates that Kwon transfer a 35% stake in Smilegate, valued at approximately 2.5 trillion won, to Lee. In addition to the equity transfer, he is also required to pay her an additional 65 billion won in cash. This settlement significantly surpasses the previous record of 944 billion won, which was awarded to Chey Tae-won, the chairman of SK Group, in his divorce settlement earlier this year.
Lee Hwa-jin filed for divorce, seeking a 50% stake in Smilegate, claiming that she had played a crucial role in financing the company during its inception. The couple married in 2001, just a year before Kwon established Smilegate, which has gained international acclaim for popular titles such as the first-person shooter game "CrossFire" and the action role-playing game "Lost Ark." Lee also emphasized her contributions over two decades in raising their children and managing their household.
In contrast, Kwon argued that Lee did not invest in or work for the company, asserting that all initial capital was sourced solely from him. A spokesperson for Smilegate refrained from commenting on the personal matters of its major shareholder, stating that the company would continue to fulfill its responsibilities as usual.
The court ruling allows both parties the option to appeal, leaving the door open for potential further legal proceedings. The divorce settlement comes at a time when high-profile divorce cases in South Korea are drawing increased attention, particularly in the tech and business sectors.
Earlier this year, Chey Tae-won's divorce settlement was initially deemed the largest in Korean history until it was later overturned by the Supreme Court due to a miscalculation regarding the couple's assets. The Supreme Court has since ordered a review of the case, highlighting the complexities involved in high-stakes divorce settlements in the nation.
As the legal landscape surrounding divorce settlements continues to evolve, Kwon and Lee's case stands as a significant example of the financial implications that can arise from the dissolution of high-profile marriages in South Korea.