The Most Expensive Divorce in Korea: A Multimillion-Dollar Separation

When we think of the most expensive divorces, names like Jeff Bezos and Bill Gates often come to mind. But high-profile divorces aren't limited to the Western world. South Korea, one of the most dynamic economies in Asia, has its own share of costly and dramatic separations. Among these, the case of Samsung's Lee Kun-hee and his ex-wife Hong Ra-hee stands out as the most expensive and contentious divorce in Korean history.

Divorce settlements involving South Korean chaebol (large family-owned business conglomerates) are often secretive, making it hard to gauge exact figures. But in the case of Lee Kun-hee, the former chairman of Samsung, the financial stakes were publicized, revealing the staggering costs of dissolving one of South Korea’s most powerful unions. This wasn’t just a battle over wealth; it was a fight over power, influence, and a legacy that extended far beyond money.

The Players: Samsung’s King and Queen

Lee Kun-hee was the third son of Samsung founder Lee Byung-chul. Under his leadership, Samsung grew from a trading company to a global electronics giant, placing the Lee family at the top of South Korea's elite. His ex-wife, Hong Ra-hee, was no stranger to wealth either, coming from a prominent family herself. As the former director of the Leeum, Samsung Museum of Art, Hong was a major figure in Korea's cultural and art scene.

Their marriage, which began in 1967, was seen as a symbol of two powerful families coming together. However, after more than four decades of marriage, their union came to an end, sparking what would become the most expensive divorce in Korean history.

How Much Was at Stake?

While divorce settlements in Korea don’t always hit the headlines, the sheer magnitude of this case made it impossible to keep under wraps. Reports estimate the settlement to be over $1.2 billion, easily making it the largest in the country's history. This figure includes not just cash but also substantial shares in Samsung, one of the world's largest tech companies, as well as valuable real estate and other assets.

The couple's divorce negotiations reportedly stretched out over several years, as both parties battled over the valuation and division of their vast fortune. With Samsung shares making up the bulk of the settlement, the divorce had the potential to impact not only the personal lives of the couple but also the future of one of South Korea's most important companies.

Impact on Samsung and the South Korean Economy

Divorces of this magnitude can have far-reaching consequences, and this one was no exception. With the Lee family being one of the most powerful in South Korea, the settlement had the potential to shake up Samsung’s ownership structure. Had Hong Ra-hee sold her shares in the company, it could have resulted in a shift in power dynamics within Samsung, affecting its leadership and future direction.

However, both Lee and Hong were keenly aware of the importance of preserving Samsung’s stability. The divorce was structured in such a way that it minimized any disruptions to the company, with Hong reportedly agreeing not to sell her shares in Samsung to external parties. Despite the personal turmoil, both parties recognized the need to safeguard Samsung’s position as a global leader in technology.

A Legacy of Wealth and Power

This divorce wasn’t just about money; it was about maintaining control over an empire. Samsung is more than just a company—it’s an institution in South Korea, and its fortunes are closely tied to the nation’s economy. For the Lee family, this divorce was about protecting their legacy and ensuring that Samsung remained a dominant force in the tech world.

While the $1.2 billion settlement was undoubtedly a significant amount, it paled in comparison to the wealth and influence that remained with the Lee family. Lee Kun-hee’s personal fortune was estimated at over $21 billion at the time of his death in 2020, and Samsung continues to be a key player in the global electronics market.

The Changing Face of Divorce in Korea

The Lee Kun-hee-Hong Ra-hee divorce marked a turning point in how high-profile divorces are perceived in Korea. For many years, divorces in the country were considered taboo, especially among the elite. But as South Korea modernized and became more open to Western influences, attitudes towards divorce began to shift. Today, it’s not uncommon for prominent figures in Korean society to go through public and costly divorces, much like their counterparts in the West.

This case also highlighted the changing dynamics of divorce settlements in South Korea. Traditionally, women were often at a disadvantage in divorce proceedings, particularly in cases involving large sums of money. But the Hong Ra-hee settlement showed that women could negotiate substantial settlements, especially when they had their own wealth and influence to back them up.

Lessons Learned: The Importance of a Prenup?

One of the key takeaways from this case is the importance of prenuptial agreements, especially for those with significant wealth. While prenuptial agreements are becoming more common in South Korea, they are still far from the norm, particularly among older generations. In the case of Lee and Hong, it’s unclear whether a prenuptial agreement was in place. However, the lengthy and contentious negotiations that followed their split suggest that having such an agreement might have made the process smoother and less acrimonious.

For younger generations of South Koreans, particularly those in business families, this case serves as a reminder of the complexities involved in dividing wealth and assets. As South Korea continues to grow as a major global economy, cases like this will likely become more common, making it all the more important for couples to plan ahead and protect their interests.

Other High-Profile Korean Divorces

While the Lee Kun-hee and Hong Ra-hee divorce is the most expensive on record, it’s far from the only high-profile separation in South Korea. The chaebol class has seen its fair share of contentious divorces, often involving staggering sums of money.

Another notable case is that of Chey Tae-won, the chairman of SK Group, and his ex-wife, Roh Soh-yeong. Their divorce, which was finalized in 2019, reportedly involved a settlement of around $1.2 billion, although the exact figures were not made public. As with the Lee case, the divorce had the potential to impact SK Group’s ownership structure, though Chey managed to retain control of the company.

These high-profile divorces shed light on the often-secretive world of chaebol wealth, giving the public a rare glimpse into the financial dealings of South Korea’s elite. While the sums involved are staggering, they also underscore the power and influence that these families wield, not just in South Korea but on the global stage.

Conclusion: A New Era for Divorce in Korea

The Lee Kun-hee-Hong Ra-hee divorce was a watershed moment in South Korea, both for the scale of the settlement and for what it represented. It signaled a shift in how divorce is perceived in the country, particularly among the elite, and underscored the changing dynamics of wealth and power in Korean society.

As South Korea continues to evolve, we can expect to see more high-profile divorces that will reshape the country's business landscape. For now, though, the Lee divorce remains the most expensive and most talked-about in Korean history, a reminder of the costs—both financial and emotional—of separating in one of the world’s wealthiest families.

At the heart of this case is a story of wealth, power, and legacy, one that continues to resonate in South Korea and beyond. As more chaebol families face similar challenges, the lessons learned from this divorce will likely shape how future generations approach the division of their fortunes.