[Exclusive] The Bitter Present of a 110 Billion Won Company that Started from a Japanese 'Oxygen Can Vending Machine'... NF Enters 'Rehabilitation Process' Despite Business Diversification

Promising hidden champion NF Co., Ltd., which once led the domestic and international oxygen supply system market and exceeded an enterprise value of 110 billion won, could not withstand severe financial pressure and ultimately filed for rehabilitation proceedings with the court. The industry's regret remains all the greater as it had achieved all-around business expansion in fields such as medical, wellness, mobility, and defense based on its solid technological prowess.

■ Inspired by a Japanese 'Oxygen Can Vending Machine'... Growth from a One-Person Enterprise to a Hidden Champion

The history of NF starts with the unique startup background of CEO Lee Sang-gon. While pursuing his master's and doctoral degrees in naval architecture, CEO Lee chanced upon an 'oxygen can vending machine' in Japan and was deeply inspired. Prompted by this, he jumped into full-scale business in 2002 by establishing a one-person enterprise called 'People Like Oxygen' that distributed oxygen generators.

Thereafter, CEO Lee, who succeeded in developing his own products beyond simple distribution, laid the foundation of the company by converting it into a corporation, NF Co., Ltd., in 2012. Through continuous research and development since its foundation, it was reborn as a technology-centric enterprise by securing patented technology that provides high-purity oxygen of over 93% for 24 hours without high-pressure oxygen cylinders.

■ A Broad Stride Encompassing Everything from Medical Use to Healthcare, Mobility, and Defense

Spearheaded by its outstanding technological prowess, NF expanded its business scope into various fields. Its core product, 'MOSS,' an oxygen supply system for hospitals, was recognized for its innovativeness in replacing high-pressure oxygen cylinders and was exported to over 10 countries, including India, Myanmar, Brazil, and Mexico, and recently achieved the feat of signing an exclusive distribution contract to supply to over 60 large hospitals in the Philippines.

Not settling for the medical market, it also jumped into the air quality improvement business for homes and offices by launching healthcare oxygen appliance brands 'O2REX' and 'NOSS' targeting general consumers. In particular, it seemed to have successfully settled into the B2C market by collaborating with the major conglomerate KT to jointly develop 'Genie Air,' an air quality management solution for buildings and homes.

Business diversification did not stop there. It developed 'O2REX-V,' a vehicular product that lowers driver fatigue inside closed vehicles, signed a contract for its application in hydrogen vehicles, and proceeded with sample testing for a German automaker. In addition, it entered the defense and disaster safety sectors by receiving a transfer of catalyst manufacturing technology from the Agency for Defense Development (ADD) to push for the commercialization of a next-generation 'non-powered portable oxygen generator' for disaster evacuation, and by discussing the supply of oxygen systems for relieving post-traumatic stress disorder (PTSD).

■ A Splendid Parade of Investment Attraction, Exceeding 110 Billion Won in Enterprise Value

These dazzling business performances and unrivaled patented technologies caught the attention of investors. Following the attraction of 1 billion won from L&S Venture Capital, Korea Science and Technology Holdings, and others in 2016, it attracted 1 billion won from G-Entek Venture Investment in 2017, recording an estimated enterprise value of 10.5 billion won. In 2018, it signed a new product joint development agreement with Nitto Seiko, a Japanese listed company, and received an equity investment of 300 million yen, causing its estimated enterprise value to jump well over 30 billion won.

Thereafter, it drew continuous investments from prominent financial and venture capital institutions, including Korea Investment & Securities, Eugene Investment & Securities, BNK Capital, and K-Ground Ventures. In 2021, its estimated enterprise value surpassed 110 billion won as it attracted a 2 billion won investment from The Nature Holdings, and it succeeded in attracting cumulative investments of approximately 30 billion won, drawing a rosy blueprint for an initial public offering (IPO) in 2024-2025.

■ Severe Financial Deterioration and Financial Pressure Behind External Expansion

However, the multifaceted business expansion and the maintenance of an organizational size of over 100 people (116 as of 2022) entailed massive costs. Even the once-active facility investments began to plummet from 2022, signaling abnormal symptoms within the company.

Sales jumped from 3.4 billion won in 2020 to 8.2 billion won in 2021, but operating losses rather swelled from -3.3 billion won to -4.4 billion won. In 2022, it could not escape a chronic deficit structure, recording an operating loss of a whopping -7.1 billion won against 7.2 billion won in sales. Following this, its very appearance shrank, with sales of 7.5 billion won (operating loss -5.0 billion won) in 2023 and sales of 3.9 billion won (operating loss -3.6 billion won) in 2024.

Ultimately, as of 2024, the accumulated deficit snowballed to 38.4 billion won, and it is estimated that the 30 billion won in cumulative investments and 4.5 billion won in government subsidies attracted over the years have all been exhausted. While current liabilities reached 22.4 billion won as of 2024, current assets were a mere 2.3 billion won (less than 100 million won in available cash), bringing the company face to face with a liquidity crisis.

■ Painful Workforce Reductions, and Ultimately 'Heading to Court'

Standing at the crossroads of survival, NF appears to have embarked on bone-cutting cost reductions and intensive workforce restructuring starting in 2024. The number of employees, which once easily exceeded 100, shrank to the 60s in 2024 and dwindled to 20 as of January 2026, but this was insufficient to lead to financial improvement.

In the end, unable to endure the exhaustion of liquidity, NF Co., Ltd. filed for the commencement of rehabilitation proceedings with the Suwon Rehabilitation Court. Accordingly, the 1st Division of the Suwon Rehabilitation Court publicly announced a comprehensive stay order dated March 9, 2026, and with this, NF is now waiting for the court's judgment with mandatory execution and provisional seizure by creditors strictly prohibited until the decision to commence the rehabilitation process is made. The 110 billion won venture myth of a young entrepreneur who nurtured a dream after seeing an oxygen can vending machine in Japan has ultimately stood on the threshold of bitter restructuring and court receivership.