A Seoul court has ordered Smilegate founder Kwon Hyuk-bin to transfer 35% of the company to his ex-wife Lee Hwa-jin, a stake worth approximately 2.49 trillion won ($1.85 billion), following a four-year divorce battle.

The ruling, reported after litigation that began when Lee filed for divorce in 2022, also requires Kwon to pay Lee a one-time settlement of 65 billion won ($48.35 million) and monthly child support of 20 million won ($14,900) for their children.

The decision ends more than 20 years of marriage with one of the largest asset divisions in Korean gaming history.

What does the ruling mean for Smilegate?

Smilegate, the studio behind Crossfire and Lost Ark, is now valued at approximately 7.1 trillion won ($5.3 billion), according to court documents — a rare public disclosure of the privately held company's worth.

Lee's new 35% stake makes her one of the largest shareholders in one of Korea's most valuable games companies. The court sided with her argument that she helped establish Smilegate in its early days, rejecting Kwon's counter-position.

Court records supported her account of her early involvement:

• She was initially listed as a company executive.
• She at one point held 30% of Smilegate's shares.
• Those shares eventually transferred entirely to Kwon.
• She stepped back from operations over time to manage the household.

Why did Lee claim half the company?

Lee had sought 50% of Smilegate's shares rather than the 35% the court granted. She filed for divorce in 2022, blaming Kwon for the breakdown of the relationship.

Her core argument rested on co-founding contributions: she said she helped Kwon build Smilegate from the start before ceding her executive role and equity. The court's valuation of her contribution at just over a third of the company sets a benchmark for how Korean courts weigh spousal involvement in business formation during long marriages.

Kwon disputed her account, but the court found the documentary evidence — including her historical 30% shareholding — persuasive enough to confirm she played a significant role in the company's early days.

What changes for the business?

Crossfire remains one of the highest-grossing game franchises globally, particularly in China and Southeast Asia, and Lost Ark continues to serve as a major live-service title for the studio. Nothing in the ruling indicates operational changes to development teams or publishing partnerships.

The open question is governance. Lee's 35% stake gives her substantial shareholder influence over strategic decisions at a company that has historically been controlled by a single founder. Whether she takes an active role, holds passively, or sells the position could reshape Smilegate's ownership structure in the years ahead.

Kwon retains the majority of the company and, with it, operational control — but he now shares the cap table with a co-founder-era stakeholder whose equity exceeds that of most institutional investors in Korean gaming.