Smilegate founder and Chief Vision Officer (CVO) Kwon Hyuk-bin (권혁빈) has appealed a first-instance ruling in his divorce and asset division lawsuit with his spouse, identified as Lee.

Kwon's side said on Sept. 28 it filed an appeal against the Seoul Family Court's first-instance ruling on divorce and asset division. It said efforts to maintain the marriage were not sufficiently reflected, and it was also hard to accept the asset division decision ordering an in-kind split of 35 percent of Smilegate shares.

The Seoul Family Court's Civil Division 3 on Sept. 9 accepted Lee's request for divorce and ruled that Kwon must transfer 35 percent of Smilegate shares to Lee in kind and pay 65 billion won in cash. The court said the marriage had reached a state that was difficult to restore, and that responsibility lay with both sides to an equal degree. It dismissed Lee's claim for consolation money.

Kwon's side first raised objections to the first-instance assessment of the marriage relationship.

Kwon's side said, "As the head of the household who hopes to maintain the family, he will continue efforts to restore the marriage," adding, "The first-instance ruling dismissed the spouse's claim for consolation money against Kwon CVO, but turned a blind eye to Kwon CVO's efforts to maintain the marriage."

It also argued it was difficult to accept that circumstances after the lawsuit was filed, including the spouse blocking contact and refusing communication and the couple living apart due to prolonged litigation, were used as grounds for assessing the marriage relationship.

It said it would also seek a higher court's judgment on the asset division decision.

Kwon's side argued that it was sufficiently revealed during the trial that Lee had not contributed capital to the company, had no separate workspace inside the company, and did not go to work or perform duties.

Kwon's side said, "Without any particular evidence, the first instance relied on the spouse's claims and ordered an asset division in a form that could affect major management decision-making, causing serious uncertainty across future corporate activities," adding, "We also want to receive a new judgment by a higher court on the asset division portion."

Earlier, the first-instance court included Smilegate shares in the asset division, considering factors including that Lee held part of the company's shares or was registered as a director and chief executive during the company's establishment and growth, and that Lee handled housework and childcare over a long period.

It set the contribution to forming assets at 35 percent for Lee and 65 percent for Kwon CVO. The court said Kwon CVO's personal business capabilities and managerial judgment had a major impact on forming the company's value during Smilegate's establishment and management, and assessed his contribution more highly. At the same time, it also considered Lee's role in the company's establishment and growth, contributions through housework and childcare, and economic support from Lee's family in the early years of marriage.

The court chose an in-kind share split rather than a cash payment as the method of asset division. It ordered Kwon CVO to transfer shares equivalent to 35 percent of the value of Smilegate shares he holds to Lee in kind, and to pay the shortfall of 65 billion won in cash.

With Kwon CVO's appeal, the first-instance decisions on divorce and asset division will be revisited in the appellate trial.