Kwon Hyuk-bin, chief vision officer of Smilegate and chairman of Hope Studio. [Yonhap]
Kwon Hyuk-bin, chief vision officer of Smilegate and chairman of Hope Studio. [Yonhap]

Kwon Hyuk-bin, chief vision officer of Smilegate and chairman of Hope Studio, has appealed a first-instance divorce ruling that ordered him to divide company shares worth 2.5 trillion won ($1.85 billion) with his former spouse.

Kwon's legal representatives said Monday that he "will continue efforts to restore the marital relationship as a husband who wishes to preserve the family," adding that he had filed an appeal against the Seoul Family Court's ruling on the divorce and asset division.

The lawyers said the first-instance ruling "disregarded Kwon's efforts to maintain the marriage and cited factors that arose after the lawsuit was filed — including the spouse's unilateral blocking of contact, refusal to communicate, and the separation caused by the prolonged litigation — as grounds for the breakdown of the marriage." They added that the legal team found it "impossible to accept such a judgment."

The representatives also addressed the former spouse's claimed contribution to building the company's assets, which the first-instance court cited as the basis for ordering a 35 percent stake in Smilegate to be divided.

"It was sufficiently established during the trial that the spouse had not contributed any capital, that there was no workspace for the spouse at the company, and that she had never come to work or performed any duties," the lawyers said.

They added that the court had nonetheless "relied on the spouse's claims without adequate evidence and ordered an asset division in a form that could influence major management decisions, creating serious uncertainty for the company's future operations." The legal team said it would seek a fresh ruling from a higher court on the asset division as well.

On Sept. 9, the Seoul Family Court granted a divorce petition filed by Kwon's former wife, surnamed Lee, and ordered Kwon to transfer to Lee a 35 percent stake in Smilegate in kind along with 65 billion won in cash as part of the asset settlement. The court dismissed Lee's separate claim for consolation damages, however.

The total asset division determined at the first instance amounted to 2.55 trillion won, the largest sum ever awarded in a Korean divorce case.

With the appeal filed, the valuation of the shares, the division ratio and the appropriateness of an in-kind split are all expected to be revisited.


kimstar@heraldcorp.com