AI Policy Platform 'CODIT' Achieves First Profit in 2025... Sheds Subsidies to Prove 'Complete Independence'

AI Policy Assistant 'CODIT' Handling 1 Billion Pieces of Data

Founded in 2020, 'CODIT' is a legal-tech startup that helps companies proactively respond to risks by collecting and analyzing fragmented legal, regulatory, and policy data from various countries using artificial intelligence (AI). Based on a vast global dataset of over 1 billion items, it has established itself as a core 'policy portal,' securing over 1,800 clients including global conglomerates, unicorn startups, and government ministries.

Explosive Top-Line Growth and Turnaround to Profitability Based on 'Operating Leverage'

According to CODIT's condensed income statement, the company has achieved explosive top-line growth over the past five years. Sales, which were a mere 52.9 million won in 2020 and 42.34 million won in 2021, have steadily increased to approximately 270 million won in 2022, 600 million won in 2023, and 720 million won in 2024. In particular, in 2025, it recorded 2 billion won, an approximate 2.8-fold surge from the previous year, reaching a peak in revenue growth.

This vertical rise in revenue triggered a typical 'operating leverage effect,' becoming the driving force behind the turnaround to profitability. Until 2024, selling, general, and administrative (SG&A) expenses, including labor costs for service advancement, swelled to 1.64 billion won, resulting in a record-high operating loss of approximately 920 million won. However, in 2025, sales (2.04 billion won) completely overwhelmed the growth rate of SG&A expenses (1.82 billion won), recording an operating profit of 200 million won and achieving a successful turnaround with an operating profit margin of 10.44%.

Qualitative Leap from a 'Government Subsidy' Dependent Structure to Complete 'Independence'

The most notable aspect of this return to profitability is the qualitative improvement of the revenue structure. Looking at the financial statements, from 2021 to 2023, CODIT consistently recorded an inflow of funds in the form of subsidies ranging from 410 million won to 460 million won annually. This amount was equivalent to or larger than CODIT's core business revenue (42 million won to 600 million won range) at the time. In other words, it shows that during its early venture days, before core business revenue got on track, the company sustained itself by recognizing R&D subsidies like TIPS and various government grants as non-operating income.

However, in 2024 and 2025, when core business (B2B SaaS) sales began to boom in earnest, this other non-operating income dropped significantly to 31.91 million won and 21.81 million won, respectively. The numbers cross-verify that 2024-2025 is precisely the timing when the company broke free from a subsidy-dependent revenue structure and achieved complete self-sustainability solely through its own solution sales.

By securing self-sustainability, the overall financial structure has also become solid. As of 2025, CODIT's total assets stand at 4.58 billion won, while its total liabilities are a mere 640 million won, maintaining a highly stable financial condition with total equity reaching 3.93 billion won.

To enhance its services, CODIT has strengthened its expertise by successively recruiting top experts in the policy and government relations (GR) fields, such as Vice President of Global Business Development Yeon Joo-hwan, formerly of Netflix, Uber, and Kakao, and Song Hae-young, Director of the Global Policy Empirical Research Institute, who brings 25 years of experience. Based on this manpower and technological prowess, the company is receiving recognition for its high corporate value in the market.

Attracting a 5 billion won investment from Premier Partners, Atinum Investment, and others in 2022 served as the driving force that enabled the company to overcome its accumulated deficits and turn a profit. The estimated corporate valuation at the time of the investment was 32 billion won.

Based on solid capital raising and the recent perfect financial turnaround, CODIT is expected to proceed with its next funding round (Series A or higher). Currently fully collecting policy data from all 50 U.S. states, CODIT plans to expand its business to global stages such as Singapore, Hong Kong, and the EU in the future, solidifying its position as a 'global policy hub.' The market's attention is focused on the next scale-up steps of CODIT, which has removed the subsidy tag and achieved complete independence.