South Korean Court Decides Do Kwon's Wife's Assets Cannot Be Confiscated By Government

The South Korean court ruled that Do Kwon's wife's assets could not be confiscated by the government (Photo; Doc. Nytimes)

JAKARTA - The wife of founder of Terraform Labs, Do Kwon, won a big victory against South Korean authorities. Based on ChainCatcher's report on July 11, 2024, a court in South Korea decided to cancel the property confiscation order previously issued against Do Kwon's wife, whose name is still kept secret.

This decision came after the South Korean government attempted to confiscate its real estate holdings, including property shares and the right to sell its apartment. According to the court's view, there must be a difference between shared property and personal property. Thus, the judge who led this case may consider this to determine that the disputed property was obtained by Do Kwon's wife on her own behalf during their marriage. This legal difference attracted to protect her assets from freezing by the government as part of an investigation into Do Kwon's business affairs.

According to Coin Speaker's information, the contested assets include real estate in Seongsu-dong, Seoul, and official sales rights in Nonhyeon-dong. Both properties were originally seized after an asset protection order of 233.3 billion won (approximately 177 million US Dollars or equivalent to Rp2.8 trillion) was issued against Kwon. However, the court has now suspended the order that binds these properties to the final verdict.

However, the crucial turning point in this case is when the court determines that real estate stocks and official sales rights are special assets of the wife in accordance with Article 830(1) of the Civil Code.

According to the findings, he obtained the assets in March and May 2021, although the government did not believe it. Authorities actually accused Do Kwon of owning the property and only bought it on behalf of his wife to avoid risks.

However, evidence has been presented in court confirming that Kwon's wife used funds from her own virtual asset account to make an initial payment of Seongsu-dong's property. This finding is sufficient to influence the court's decision which recognizes the asset as a special asset.

While Do Kwon is still facing charges of financial offenses, the court's ruling firmly states that his wife's assets cannot be confiscated automatically just because of their marital status. This decision by the court will show the importance of ownership of separated assets in marriage, especially in cases of marriage, one or both of which are involved in a high-risk business.