November 26, 2024

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Smilegate Founder Kwon Hyuck-bin (Smilegate)

Kwon Hyuck-bin, founder of South Korea’s gaming giant Smilegate and the nation's fifth richest person in terms of asset value, is going through an expensive divorce, according to legal sources Tuesday.

Kwon’s wife was recently ruled in favor of her claim banning her husband from selling company shares until the divorce is finalized. Kwon controls 100 percent shares of Smilegate that is best known for its popular shooting game “Crossfire.”

If the court orders Kwon to split the stocks with his spouse, there could be significant change in Smilegate’s ownership, sources said.

According to Forbes, Kwon’s assets are worth some $6.85 billion, taking place as the fifth richest person in Korea, following Kakao founder Kim Beom-su, Samsung Electronics Chairman Lee Jae-yong, MBK Partners Chairman Kim Byung-ju and Celltrion founder Seo Jung-jin, as of April 2022.

Experts say Kwon’s wife could be entitled to a considerable amount of stake in her husband’s assets.

“Even if housewives haven’t directly contributed to building wealth for the family, recently the court is ordering husbands to give 30-40 percent of the couple’s joint property to their wives,” said Noh Philip, divorce attorney at Oh-hyun law firm.

“Since Kwon founded the company after the marriage, his assets can fall into the category of marital property. Kwon’s wife can claim as much as 50 percent stake.”

Noh Eun-jung, divorce attorney at Teheran law firm, also said if a couple maintains marriage for more than 10 years, the court is likely to acknowledge that the wife highly contributed in accumulating wealth. Kwon and his wife got married in 2001.

Smilegate declined to comment on the matter citing Kwon’s privacy.

Founded in 2002, Smilegate had a huge success with the Crossfire game, paving the way for its global expansion. Currently, the company has eight subsidiaries including Smilegate Investment, Smilegate Entertainment and Smilegate Megaport, with 10 trillion won ($756 million) worth in corporate value.

By Byun Hye-jin (hyejin2@heraldcorp.com)