Smilegate founder Kwon Hyuk-bin divorce lawsuit, property division up to 8 trillion won — Law Firm Jonjae Managing Attorney Yoon Ji-sang joins the plaintiff-side counsel

Delight Report | Law Firm Jonjae Managing Attorney Yoon Ji-sang

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The divorce and property division lawsuit between Smilegate founder and Chief Vision Officer (CVO) Kwon Hyuk-bin and his spouse, Mr. Lee, is unfolding on an unprecedented scale in the history of the Korean legal profession. The share and asset division being discussed alone is up to 8 trillion won, and the largest divorce trial on record is even expanding into a 'law firm showdown.' Law Firm Jonjae's Managing Attorney Yoon Ji-sang is participating in the plaintiff-side (Ms. Lee's side) counsel team.

Property division up to 8 trillion won — valuation of unlisted shares is the key

The key issue in this lawsuit, currently being heard by the Family Division 3 of the Seoul Family Court, is how to assess the value of Smilegate Holdings, which CVO Kwon Hyuk-bin owns 100%, and its affiliates across RPG and entertainment businesses. The process of valuing unlisted shares is said to be virtually no different from the due diligence process in a corporate merger and acquisition (M&A), and because the amount to be divided can vary by trillions of won depending on the valuation method, a highly complex legal dispute beyond a simple family case is inevitable.

Large law firms vs. specialized boutique firm alliance — 25 specialist attorneys in a showdown

On CVO Kwon Hyuk-bin's side, law firm Hwawoo, a top-10 firm in Korea's legal market, has been retained, forming an elite counsel team of five attorneys specializing in litigation and arbitration, asset management, and taxation.

In contrast, Ms. Lee's side has formed an alliance centered on boutique firms specializing in family and inheritance law. Law firms Gaon, Jonjae, and Soongin, along with the large firm Dae Ryuk Aju, have joined forces, creating a lineup of five law firms and 20 litigation attorneys. As in the divorce lawsuit of SK Group Chairman Chey Tae-won, this is a structure in which large law firms and specialized boutique firms face off.

Law Firm Jonjae — Managing Attorney Yoon Ji-sang, former chief judge of the Family Court, joins

At Law Firm Jonjae, Managing Attorney Yoon Ji-sang, a former chief judge of the Family Court, along with family law specialists including Attorneys Shin Yoo-kyung and Shin Mi-jin, has joined the counsel team. Managing Attorney Yoon Ji-sang served as a judge for 13 years, directly handling numerous divorce trials and inheritance property division adjudications, and as a co-author of the Practical Handbook for Inheritance Property Division and Reserve of Legacy Cases, he possesses a level of expertise that sets the standards for trials.

As this lawsuit involves the largest property division in the history of divorce litigation in Korea, the legal community expects it to become a major turning point that could also affect the future landscape of the large-scale divorce case market.