Owner's property division to change Smilegate's governance

The ruling on Smilegate founder and chief vision officer Kwon Hyuk-bin’s divorce settlement is expected to bring changes to the company’s governance structure, which is currently based on Kwon’s full ownership. The Seoul Family Court on Wednesday ordered Kwon to transfer a 35 percent stake in the company to his wife, surnamed Lee, as part of property division. Although the two sides can appeal and the size of the stake could change, it is highly likely to alter the ownership structure Kwon has maintained since 2012. Smilegate had previously consisted of several separate entities, including Smilegate Holdings, Smilegate Entertainment which operates CrossFire, and Smilegate RPG, which operates Lost Ark. Earlier this year, however, the group merged the entities into a simpler structure fully owned by Kwon. Without public explanation on why he maintains full ownership, the structure has drawn both positive and negative assessments. On the positive side, it is seen as a strategy to operate the company independently without disputes among shareholders or pressure from outside investors s