[Exclusive] 'Smart School' Company SIG Ultimately Declared Bankrupt... Dream of KOSDAQ Listing 'Dashed'

Promising venture that dominated over 8,000 schools and KTX stations nationwide declared bankrupt on the 16th

In a state of 'complete capital impairment' since 2024... Current liabilities exceed assets by 3 billion won

Failed to prevent profitability collapse despite 'defensive measures' such as changing accounting standards

SIG, which reigned as a powerhouse in 'smart school' infrastructure by recording the No. 1 market share in domestic smart device charging and storage cabinets, has eventually collapsed, unable to overcome financial difficulties. It aimed for a KOSDAQ listing (IPO) by laying out infrastructure in over 8,000 schools and major KTX stations nationwide, but accumulated deficits and an abnormally high-cost structure dragged it down.

Court decides on 'summary bankruptcy' on the 16th... Assets effectively '0'

According to the legal community on the 20th, the Seoul Bankruptcy Court declared SIG Co., Ltd. bankrupt on the 16th. What is notable is that the court decided on a 'summary bankruptcy'. Summary bankruptcy is a procedure applied when a debtor's assets are less than 500 million won, meaning that the company's current assets have essentially hit rock bottom. Claim filings will proceed through the Seoul Bankruptcy Court until the 30th.

"Dreamed of worldwide expansion"... Growth engine stopped after 6 years

Founded in July 2019, SIG grew rapidly alongside the spread of non-face-to-face education following COVID-19. CEO Lee Hee-gyu preempted the market by solving the power overload problem that occurs when charging multiple smart devices simultaneously in a classroom with 'AI variable charging technology'.

Its flagship product, 'SyncPro', was distributed to over 8,000 schools nationwide, and in cooperation with KORAIL, it entered the B2C (business-to-consumer) market by installing 'Mobile Tower', a power bank rental system, at about 150 stations nationwide, including Seoul Station and Busan Station. In a past interview, CEO Lee expressed his aspiration, saying, "We will expand into the global market through collaboration with world-class AI companies and enter KOSDAQ." However, with this bankruptcy declaration, his vision of a 'global smart infrastructure company' has been shattered.

'Complete capital impairment' and financial warning lights
This is because severe financial insolvency was coiled behind SIG's external growth.

According to the 2024 audit report, SIG was already in a state of 'complete capital impairment' (total equity of -280 million won), where its liabilities exceeded its assets. Current liabilities to be repaid within one year (6.57 billion won) were more than 3 billion won higher than liquidable current assets (3.49 billion won), meaning it was in a 'terminally ill' state, unable to survive without external fund injections. The auditor also issued an opinion that "its ability to continue as a going concern is uncertain."

In particular, the company also made unreasonable moves to recover its financial soundness. A prime example is the change from Korean International Financial Reporting Standards (K-IFRS), applied until 2023, to Korean Generally Accepted Accounting Principles (K-GAAP) starting in 2024. This was a desperate measure to lower the debt ratio by recognizing Redeemable Convertible Preference Shares (RCPS), classified as 'liabilities' under K-IFRS, as 'equity' under K-GAAP, but it was not enough to cover up the fundamental insolvency.

"The more sold, the more lost"... Cost ratio approaching 81%

The direct cause of the bankruptcy is the collapse of profitability. SIG's cost of goods sold ratio reached 81.7%. It was a structure where selling 100 won worth of goods resulted in 82 won going to costs, leaving only 18 won to cover labor, rent, and interest. This is a high-cost structure far exceeding the manufacturing industry average.

As operating cash flow dried up, it failed to control fixed costs, recording a net loss of 3.27 billion won.

The continuation of high interest rates in a situation with high dependence on short-term borrowings was also a fatal blow. Annual interest expenses alone reached 410 million won, showing the epitome of a marginal company that cannot even pay off its interest with the money earned from operations.

SIG attempted to secure cash by collecting trade receivables and reducing inventory, but it was too late to handle the already ruined profit structure and financial costs, ultimately receiving a summary bankruptcy declaration.