Look, let us be honest—divorce settlements usually do not hit quite like this. In the first trial of the divorce lawsuit between Smilegate founder and Chief Visionary Officer (CVO) cum Hope Studio Chairperson Kwon Hyuk-bin and the spouse Lee, the court has handed down a record-shattering property division order amounting to a staggering 2.55 trillion won.

On November 9, the Family Division 3 of the Seoul Family Court accepted the divorce petition filed by Lee, ruling that the marital relationship between the two parties had reached an irretrievable breakdown and that the causes for the breakdown were mutual. This comes roughly four years after the lawsuit was initially filed back in November 2022.

In this ruling, Lee's claim for alimony was dismissed, but the court included Smilegate shares held by Kwon in the pool of assets subject to division, recognizing a 35% contribution rate for Lee. Kwon's net assets are estimated at roughly 7.3375 trillion won, of which the share value alone accounts for about 7.1049 trillion won.

Consequently, the court ordered Kwon to transfer shares equivalent to 35% of Smilegate holdings, valued at approximately 2.4867 trillion won, and to pay 650 billion won in cash. This appears to be a pragmatic measure considering the reality that the absolute majority of assets are tied up in unlisted shares, making it difficult to mobilize trillions of cash instantly, alongside the costs and tax burdens associated with a massive sell-off. In addition, the court ruled that parental authority and child-rearing should be entrusted to the wife, with monthly payments of 20 million won to be made until the children reach the age of majority. Given that unlisted company shares were broadly recognized as jointly acquired marital property with a substantial stake ordered to be physically handed over, this verdict leaves quite a notable precedent for corporate governance as a whole.

The two sides reportedly held sharply contrasting views regarding cooperation during the early days of the startup. Lee's legal camp demanded half of the shares, pointing to the registration as Smilegate CEO from July 4 to November 14, 2002, the history of holding stakes, and over two decades dedicated entirely to housekeeping and child-rearing. On the flip side, Kwon's side fired back, arguing that the spouse did not substantially contribute seed capital, had no record of working full-time in the office, was not a founding partner, and that there was zero culpability for the marital breakdown.

To this, the court judged that Kwon's business acumen and managerial decisions played a pivotal role in the corporate growth. However, considering the past registration as corporate representative, contributions to domestic affairs, financial support from the spouse's family in the early days, and large-scale dividends executed after the litigation was filed, the court deemed it fit to officially acknowledge a certain degree of spousal support and contribution.

Based on this first-instance ruling, the founder Kwon secures the remaining 65% stake, preserving managerial control over the company. That being said, the possibility of fluctuations in the held shares through future appeals and final appeals still remains on the table.

Smilegate stated via an official channel, "The company has nothing special to say regarding the major shareholder's personal matters," adding, "The company will faithfully carry out its operations just as before."