Kwon Hyuk-bin (권혁빈), founder and Chief Vision Officer (CVO) of Smilegate, is facing an appeal from his spouse, identified only as Lee, over a first-instance ruling in their divorce and property division case. Lee's side said it will argue in the appeals court that her contribution to Smilegate's establishment and management should be fully assessed.

According to Lee's legal representative, Gaon Law Firm, Lee filed an appeal on Sept. 29 with the Seoul Family Court's Family Division 3. It came a day after Kwon, the CVO, filed his appeal. Lee is known to be contesting the scale of the property division rather than the divorce itself.

The Seoul Family Court's Family Division 3, on Sept. 9, granted Lee's divorce request and assessed her contribution to forming the marital property at 35 percent, versus 65 percent for Kwon. It ordered an in-kind division of 35 percent of Smilegate shares and a cash payment of 65 billion won.

Gaon issued a statement a day earlier titled, "Position on the appeal," and rebutted Kwon's side's previously stated position on the appeal.

Lee's side said Kwon's side's claim that she did not invest or participate in management was not true. Gaon said Lee was a shareholder and co-founder who invested 30 percent of the capital at the time Smilegate was established, and that she directly took part in management as she was listed as CEO and as a director in the early stages. It said corporate registry documents and the shareholder register support the claim, and that the first-instance ruling also recognised the related facts.

Kwon's side previously argued, in essence, that Lee did not invest in the company's capital or go to work at the company to perform duties, and challenged the first-instance judgment on property division.

Lee's side also cited past media interviews in which Kwon mentioned his spouse's dedication and contribution. It said the contribution to forming the property should be reassessed, considering not only housework and childcare but also her direct participation in company management.

The first-instance panel, however, placed greater weight on Kwon's business capability and management judgment as contributions to the company's growth, setting the ratio at 65 percent for Kwon and 35 percent for Lee.

Gaon said it will consider legal action if company-related individuals spread information to the media that differs from the facts. It also issued a position saying it hopes the appellate proceedings will be conducted based on objective evidence and legal principles.

With both sides appealing, the appellate court is expected to again address key issues including the divorce decision, the property division ratio for Smilegate shares, and the extent of Lee's contribution to the company's founding and growth process.