Smilegate founder's divorce heads to September ruling, with property split potentially reaching W4tr

Property split of 4 trillion won ($2.65 billion)?

The divorce lawsuit involving Kwon Hyuk-bin, founder and Chief Vision Officer of Smilegate Group, is set to be decided in September — four years after his spouse, identified only by her surname Lee, filed for divorce and property division.

Legal circles are calling the case unprecedented. Lee is reportedly seeking half of Smilegate Holdings' shares, arguing that she contributed to the company's founding and asset formation in its early days.

Kwon's stake is estimated at around 8 trillion won, meaning the property settlement could reach as much as 4 trillion won. The potential scale has drawn close industry attention, as the outcome could shake Smilegate's management.

The Seoul Family Court's Family Affairs Division 3 (presiding judge Jeong Dong-hyeok) closed arguments Thursday in the divorce case Lee filed against Kwon and set Sept. 9 as the sentencing date.

The central issue in the property division dispute is expected to be whether Lee contributed to Smilegate's asset formation through involvement in its early founding and management. Lee claims she participated from the company's earliest days, including through equity investment and management roles.

Smilegate, however, said: "Lee did not contribute capital and is not a co-founder," adding that "according to employees at the time, Lee did not come into the office."

Fault for the breakdown of the marriage is also in dispute. Lee is said to be claiming that Kwon bears responsibility for the divorce, a position Kwon rejects. He is contesting the divorce itself.

Beyond the courtroom, some in and around the gaming industry have raised wry questions about how to value the growth of a company built on the efforts of its employees.

"The company's growth is the product of its employees' hard work — how to view that is also worth thinking about," an industry official said.

Kwon graduated from Sogang University with a degree in electronic engineering in 1999, married in May 2002 and founded Smilegate the following month. Last year, Smilegate posted consolidated sales of 1.44 trillion won, operating profit of 359.8 billion won and net profit for the period of 302.3 billion won.