The ruling, handed down on Wednesday, requires Kwon to transfer a 35% stake in Smilegate—valued at approximately 2.5 trillion won—to Lee, plus an additional 65 billion won in cash. The settlement more than doubles the previous record of 944 billion won, which tech tycoon Chey Tae-won was ordered to pay his ex-wife in July — a decision later struck down by the Supreme Court over a miscalculation.
Kwon, whom Bloomberg estimates to be worth $3 billion, founded Smilegate in 2002, a year after marrying Lee. The company is South Korea's third-largest video game developer, known for titles such as the first-person shooter CrossFire and the action role-playing game Lost Ark.
In her divorce filing, Lee sought a 50% stake in Smilegate. Her lawyers argued that she helped finance the company at its founding and that she spent more than two decades raising their children and managing the household. Kwon countered that Lee neither invested in nor worked for the company. Earlier this year, Smilegate issued a statement saying all of the company's initial capital came from Kwon.
A Smilegate spokesperson declined to comment on the major shareholder's personal matters, stating, "We will continue to faithfully perform our duties as usual." Both parties retain the right to appeal the ruling.