Game company Smilegate's founder Kwon Hyuk-bin, Chief Vision Officer (CVO), and his spouse, Lee, are taking their divorce lawsuit to an appeals court. Both parties are contesting the first trial's ruling, which ordered the division of assets exceeding 2.5 trillion won.
The second trial is expected to focus on the legal responsibility for the breakdown of the marriage and the contribution of Lee to the formation of the couple's assets.
■ Background of the Divorce Lawsuit
Kwon, born in 1974 in Jeonju, graduated from Sogang University with a degree in electronic engineering in 1999. He met Lee during college, and they married in 2001. In 2002, he founded Smilegate. Lee held a 30% stake in the company during its early years and was once listed as the CEO. Since 2012, Kwon has owned 100% of the shares.
Lee filed for divorce in November 2022, claiming Kwon had neglected his family. The couple had been living apart since 2020. Along with the divorce, Lee sought asset division and alimony.
In contrast, Kwon expressed a desire to maintain the marriage.
■ First Trial's Ruling
After nearly four years of litigation, the first court ruling was issued on September 9. The Seoul Family Court accepted Lee's divorce claim and determined the asset division ratio to be 65% for Kwon and 35% for Lee.
As a result, Kwon is required to pay Lee 35% of Smilegate's shares and 650 million won in cash. The total value of the asset division amounts to approximately 2.55 trillion won, marking it as the largest divorce settlement in South Korea's history.
The court considered Lee's early stake in the company and her long-term contributions to household and child-rearing responsibilities. However, it found that both parties shared equal responsibility for the marriage's breakdown and rejected Lee's claim for alimony.
■ Reasons for Appeals
Kwon filed an appeal on September 28. His legal representative argued that the first court overlooked Kwon's efforts to maintain the marriage. They contended that the court incorrectly attributed the breakdown of the marriage to factors arising after the lawsuit was filed, such as Lee's unilateral communication blockade and the prolonged separation.
Kwon reiterated his commitment to preserving the family. He also contested the asset division ruling, arguing that Lee did not contribute to capital investment or actual business operations, making the stock division unjust.
Lee's side submitted their appeal on September 29, moving the legal dispute to the appellate court.
■ Key Issues in the Second Trial
The appeals court is expected to focus on the responsibility for the marriage's breakdown and the appropriateness of the divorce claim.
Attention will be on how the legal principles of 'fault-based' and 'irretrievable breakdown' are applied. Fault-based principles generally do not allow a spouse who is primarily responsible for the breakdown to file for divorce, while irretrievable breakdown principles emphasize whether the marriage has deteriorated beyond repair.
The Supreme Court has traditionally upheld fault-based principles while considering the possibility of reconciliation and the intentions of the other spouse.
Lee's contribution to asset formation will also be a significant issue, including her early shareholding and management participation, as well as the value of her long-term contributions to household and child-rearing labor.
The appellate court's decision could alter the asset division ratio, amount, and payment method.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.