The divorce and property division lawsuit involving Smilegate founder Kwon Hyuk-bin, Chief Vision Officer (CVO), is heading to the appellate court. Following CVO Kwon's appeal against the first-instance ruling on the 28th, the plaintiff, his wife Ms. Lee, also submitted an appeal to the Family Agreement Division 3 of the Seoul Family Court (Presiding Judge Jung Dong-hyuk) on the 29th. As both sides rejected the first-instance outcome, the fate of the 35% stake in Smilegate will once again be decided by the Seoul High Court.
The two parties are challenging different aspects of the decision. For Ms. Lee, who initially filed the divorce lawsuit, the focus of the appeal is expected to center on the division amount rather than the divorce itself. Ms. Lee's side reportedly considers the 35% ratio set by the first court to be too low. Conversely, as CVO Kwon's side expressed a desire to restore the marriage, the second-instance trial is highly likely to contest the ruling granting the divorce itself.
On the 9th, the first-instance court granted the divorce petition while dismissing the claim for alimony. The court judged that the marital relationship was irretrievably broken and that neither party was solely to blame. The marital assets subject to division totaled 7.3375 trillion won. The court allocated 35% of this as Ms. Lee's share, ordering a 35% equity stake in Smilegate (valued at approximately 2.4867 trillion won) to be distributed in kind, with the remaining shortfall of 65 billion won to be paid in cash. Totaling approximately 2.55 trillion won, this is the largest property division judgment ever disclosed in South Korea. The court included the company's equity in the division, citing Ms. Lee's history of holding a partial stake and serving as CEO during the company's early stages, as well as her shared role in managing domestic duties and raising their children over their long marriage.
CVO Kwon's side maintains that neither decision is acceptable. Regarding the granting of the divorce, they stated, "The court granted the divorce petition by attributing the breakdown of the marriage to post-lawsuit factors, such as the spouse's unilateral blocking of contact, refusal to communicate, and separation caused by prolonged litigation," adding, "This is impossible to accept." On the court recognizing her contribution to the company, they countered, "The spouse never contributed capital, had no workspace at the company, and never came to work or performed any duties," arguing, "Without distinct evidence, the first instance relied on the spouse's claims to order a property division in a form that could impact major corporate management decisions."
Meanwhile, if the first-instance ruling is finalized, CVO Kwon's 100% stake in Smilegate, held since 2012, will be split into 65% for CVO Kwon and 35% for Ms. Lee. Ms. Lee's side has not released a separate statement regarding the appeal, and the schedule for the appellate trial has not yet been specified.
