More than seven in 10 companies that attempted comebacks after completing corporate rehabilitation have either shut down again or are barely surviving without creating jobs, government data shows.
Of the 728 companies that received restart support funds from the Ministry of SMEs and Startups, 213 had closed as of January this year. Among survivors, 347 firms employ two or fewer workers, meaning 77% of recipients have either folded or effectively operate as one-person businesses.
The government disburses 200-300 billion won ($145-218 million) annually in policy loans, but funding fails to translate into growth and job creation. The Korea Credit Guarantee Fund's restart support program has plummeted from 13 companies and 500 million won in 2019 to just four companies and 200 million won last year.
"The policy paradigm needs to shift toward expanded investment attraction support linked with venture capital," one restart company CEO said.
Korean Autonomous Driving Firms Eye Middle East
Autonomous A to Z became the first self-driving company to receive national core technology export approval from the Ministry of Trade, Industry and Energy. The startup targets $7.6 million in contracts this year through its UAE joint venture with G42, a subsidiary of Abu Dhabi sovereign wealth fund Mubadala.
The company aims to generate $78 million in local revenue by 2035. Kakao Mobility has also signed contracts for Saudi Arabia's Diriyah smart city project, valued at $63 billion.
Nvidia Reports Record Quarter Amid AI Chip Surge
Nvidia posted fiscal Q4 2026 revenue of $68.127 billion, up 73% year-over-year and exceeding analyst expectations of $66.2 billion. Annual revenue reached $215.9 billion, a 65% increase.
CEO Jensen Huang said agentic AI requires up to 10 times more chips than traditional large language models. He projected current-quarter revenue of $78 billion.
Celltrion Begins U.S. Production for Eli Lilly
Celltrion announced it started contract manufacturing for Eli Lilly in February at its Branchburg, New Jersey facility acquired late last year. The move addresses tariff uncertainties while the company maintains two years of inventory already in the U.S.
Naver Launches AI Shopping Agent
Naver unveiled a beta "Shopping AI Agent" in its Naver Plus Store app, marking early-stage agentic commerce where AI handles everything from search to payment. The company plans to expand coverage from electronics and furniture to cosmetics and food in the first half.
