Smilegate Chief Vision Officer (CVO) Kwon Hyuk-bin filed an appeal on the 28th after refusing to accept the first-instance ruling on his divorce and property division issued by the Seoul Family Court. The lower court's decision ordering Kwon to transfer 35% of his Smilegate stake to his spouse will now be re-examined in an appellate court.
On the 9th, the Family Division 3 of the Seoul Family Court (Presiding Judge Jeong Dong-hyeok) granted the divorce petition filed by CVO Kwon's spouse, Ms. Lee, while dismissing her claim for alimony. Lee filed the lawsuit in 2022. The court determined that the couple's marriage had broken down beyond repair and that both parties were equally responsible for the breakdown.
The total assets subject to property division were calculated at 7.3375 trillion won. The court set the division ratio at 35% for Lee and 65% for CVO Kwon, ordering Lee's share of approximately 2.55 trillion won to be paid through 35% of Smilegate shares and 65 billion won in cash. The court assessed the value of the shares at 7.1049 trillion won. The court ruled that Lee contributed directly and indirectly to Smilegate's growth and asset formation. The scale of the property division is known to be the largest in the history of domestic divorce lawsuits in South Korea.
In a statement, CVO Kwon's side raised objections to both the approval of the divorce and the property division ruling.
"While dismissing the spouse's claim for alimony, the first-instance ruling ignored CVO Kwon's efforts to maintain the marriage and granted the divorce petition by treating post-lawsuit factors—such as the spouse's unilateral cutting off of contact, refusal to communicate, and separation caused by prolonged litigation—as grounds for the marital breakdown," CVO Kwon's team stated, adding, "It is completely unacceptable to accept such a first-instance decision." They added, "As the head of the household who wishes to preserve the family, he will continue his efforts to restore the marital relationship."
Regarding the property division, Kwon's side refuted the section recognizing Lee's contributions to the company.
"It was fully demonstrated during the trial that the spouse never contributed capital, had no workspace at the company, and never commuted or performed any duties," CVO Kwon's team argued. "Without clear evidence, the first instance relied on the spouse's claims to order a form of property division that could affect major corporate management decisions."
They further stated, "We intend to seek a new judgment from the higher court regarding the first-instance property division ruling, which has introduced significant uncertainty across overall corporate activities."
With the property division determined in equity rather than cash, Smilegate's corporate governance is expected to be a central issue in the appeal. CVO Kwon has held a 100% stake in Smilegate since 2012. If the first-instance ruling is finalized, Lee will hold a 35% stake, creating a structure where Kwon must align interests with Lee when pursuing major management matters. Lee's side is reportedly taking the position that the 35% division ratio is too low. The appellate trial will take place at the Seoul High Court.
