South Korean tycoon Kwon Hyuk Bin has been ordered to pay his ex-wife 2.55tn won (£1.40bn) in the largest divorce settlement in the country’s history. Mr Kwon, 52, was ordered by a court to transfer a 35 per cent stake in the gaming company Smilegate, which he founded, to Lee Hwa Jin and pay her 65bn won (£35.75m) in cash.Ms Lee had sought a 50 per cent stake in Smilegate, arguing that she helped finance the company when it was founded. She also argued that she had spent more than 20 years raising their children and caring for their household.“The defendant must pay the plaintiff 35 per cent of his Smilegate shares in kind and 65bn won in cash as a division of property,” the court ruled on Wednesday, according to state news agency Yonhap. “The defendant must provide the plaintiff with a total of approximately 2.55tn won.”Ms Lee married Mr Kwon in 2001, a year before he founded Smilegate. She filed for divorce in 2022.Mr Kwon argued that Ms Lee had neither invested in nor worked for the company. Smilegate, known for producing hit games like Crossfire, said earlier that all of its initial capital came from Mr Kwon. A company spokesperson refused to “comment on the major shareholder’s personal matters”. “We’ll continue to faithfully perform our duties as usual,” they said.In the course of the divorce proceedings, Ms Lee’s lawyers said “the company shares are the couple’s joint property”. But Mr Kwon’s lawyers argued that “Lee didn’t contribute any capital and was only a nominal CEO on paper, without ever actually attending work at the company”. The court held that “considering that Lee held a portion of the company shares and was solely responsible for household and childcare for a long period, she should be recognised as having contributed directly and indirectly to the company.”The court also appointed Ms Lee the guardian of the couple’s minor child and directed Mr Kwon to pay 20m won (£11,000) a month in child support. They reportedly have two children. It however rejected Ms Lee’s claim for alimony, according to South Korean media. Both sides can challenge the ruling. The settlement is more than twice the previous record of 944bn won (£519m) involving SK Group chief Chey Tae Won and his partner Roh Soh Yeong. Mr Chey accepted 700bn won (£385m) of that award but was contesting the remaining 244bn won (£134m) at the Supreme Court. The settlement ruling has sparked concern in the gaming industry about the impact on Smilegate. “While Kwon’s management rights with 65 per cent stake are unlikely to be shaken,” an unidentified industry insider was quoted as saying by The Chosun Daily, “Lee could pressure the company by requesting the dismissal of directors or auditors or making direct shareholder proposals.”Mr Kwon founded Smilegate in 2002 but it struggled for years to produce a successful game. The breakthrough came in 2008, when Crossfire became a hit in China after being distributed through Tencent. The success turned Smilegate into a major gaming company and helped Tencent expand its business.Crossfire eventually reached 1.1 billion cumulative users across more than 80 countries, making Mr Kwon one of South Korea’s wealthiest entrepreneurs. Forbes valued Mr Kwon’s fortune at $3.1bn in its 2026 Korea rich list released in April, ranking him 16th. He had been as high as fourth in 2023. According to Forbes, Mr Kwon had established schools in China and Vietnam through the Smilegate Foundation, which was set up provide education in IT and other subjects.