Remaining Cash of 13 Million Won, Employee Count Reduced to a Quarter... What is Ziovision's Response Strategy?

An AI Startup Recognized for Innovative Technology, the Financial Crisis Hidden Behind the Scenes

Ziovision is a startup originating from the Kangwon National University Business Incubation Center that specializes in developing artificial intelligence (AI)-based data analysis solutions. It is actively expanding its business with two main pillars: a social safety control business utilizing its intelligent video surveillance system 'ZioSummary', and medical AI solutions such as 'DeepTDM', which was designated as an innovative medical device by the Ministry of Food and Drug Safety. Although its technological capabilities are widely recognized externally, such as recently being designated as a high-tech enterprise by the Ministry of Science and ICT, a closer look at the financial indicators that form the foundation of the company reveals that it appears to be at a critical management crossroads due to a liquidity squeeze.

[Source: Ziovision website]

Snowballing Deficits Despite Revenue Growth, Even Investment Funds Drying Up

This financial crisis is clearly evident in the company's profit and loss trends over the past few years. According to Ziovision's condensed income statement, the company's revenue steadily expanded its external size from around 500 million won in 2019, growing to 1.51 billion won in 2024. However, alongside revenue growth, operating losses also showed a continuous expansion. The operating deficit, which was about 120 million won in 2021, ballooned to 1.72 billion won in 2023, 1.01 billion won in 2024, and reached 1.44 billion won in 2025. To overcome this deficit trend, the company attracted an investment of 1 billion won at an estimated corporate value of 11 billion won from Honest Ventures and others in 2022, and after securing investment from the Korea SMEs and Startups Agency (KOSME), it received a follow-on investment of 1.5 billion won at an estimated corporate value of 13.5 billion won from Anda Asia Ventures in 2024. However, due to chronic large-scale operating deficits, the hard-earned investment funds are now understood to be virtually depleted.

Cost of Sales Surges Despite Revenue Decline... Facing Dried-Up Cash and a Liquidity Squeeze

Above all, the point causing the greatest concern is the structural deterioration of profitability in its core business. Generally, when a company's revenue decreases, product production or service provision is reduced, so it is a normal trend for the cost of sales to decline as well. However, in Ziovision's case, while it recorded a cost of sales of 890 million won against revenue of 1.51 billion won in 2024, showing a cost-to-revenue ratio of about 59%, in 2025, despite revenue decreasing by about 11% year-on-year to 1.34 billion won, the cost of sales actually surged by 24% to 1.11 billion won. Consequently, the cost ratio soared to 83%, which means that the company's fundamental profit model itself has been severely compromised by factors such as skyrocketing raw material prices, a surge in outsourcing processing costs, or the write-off of bad inventory.

The deterioration in profitability immediately led to an extreme liquidity squeeze. Cash and cash equivalents, which amounted to approximately 1.24 billion won as of the end of 2024, shrank to about 13 million won as of the end of 2025 in just one year. This means that over 1.2 billion won in cash was exhausted into thin air as operating funds, among other things, within a year. With the funds currently remaining in the company's safe, it is facing a severe crisis where it is difficult to even cover employee salaries, which are estimated to cost an average of about 80 million won per month right now. In fact, reflecting this empty safe situation and severe financial difficulty, the number of Ziovision employees, which had reached 36 as recently as early 2025, has plummeted to 8 as of April 2026.

Loss of Repayment Ability and Complete Capital Impairment... A Financial State Pushed to the Brink

On top of this, even the short-term debt repayment ability is virtually lost. As of 2025, current assets that can be cashed in within a year are merely 41 million won, whereas current liabilities to be paid off within a year well exceed 1.1 billion won. The current ratio, which shows a company's short-term debt repayment ability, is hovering at a mere 3.7%, falling far short of the normal safety standard of 100~200%. In particular, when the 380 million won in short-term borrowings newly recorded in the 2025 books reaches maturity, there is a very high risk of taking a fatal blow as the current cash reserves will not be able to cover it. Due to the accumulated deficits over time, unappropriated retained earnings have reached minus 4.4 billion won, and by exhausting all the capital invested by shareholders, total equity has also turned to minus 720 million won, resulting in a state of complete capital impairment. This directly leads to a decline in the company's external credit rating, making it difficult to expect normal additional loans from the financial sector.

Painful Restructuring and Flexible Self-Rescue Measures Desperately Needed for Survival

As a result, Ziovision is following a typical path of financial deterioration, starting from a surge in cost of sales, leading to worsening profitability, fixed cost burdens, large-scale operating deficits, cash depletion, increased borrowings, and complete capital impairment. Because normal interest or principal repayment is impossible with the current financial structure, highly intensive restructuring for immediate survival and compromises with creditors may be necessary.

In addition, the business structure with an abnormally high cost of sales ratio must be drastically reorganized, and the company must secure survival funds through cooperation with strategic investors, attracting investments, or spinning off businesses by leveraging its externally recognized core technologies and sound business units. All of these processes should be taken as agonizing growing pains to protect the company's valuable technological assets.

Above all, Ziovision is a promising company that has already proven its excellent technological capabilities, providing practical help to our society, ranging from video surveillance systems for public safety to AI solutions designated as innovative medical devices. Although the approaching financial cold snap is extremely harsh, it is hoped that the company will wisely overcome it by taking it as an opportunity for innovative restructuring and strengthening its inner workings. We sincerely cheer for Ziovision, which has silently led the advancement of technology, to overcome the current daunting crisis and rise up once again to soar firmly as an 'AI solution company that helps people,' just as its original goal intended.