Cosmo Robotics Shares Plunge Amid Pre-IPO Revenue Inflation Probe
Cosmo Robotics, a KOSDAQ-listed company, is under police investigation over allegations that it inflated its revenue ahead of its stock market debut. Suspicions that a significant portion of the financial results presented to investors during the initial public offering (IPO) process stemmed from fa
Cosmo Robotics, a KOSDAQ-listed company, is currently under investigation by the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit for allegedly inflating its revenue ahead of its IPO. The investigation centers around suspicions that the company inflated its 2025 revenue by approximately 3.5 billion won ($2.58 million) by recording robot sales that did not reflect actual transactions.
This amounts to around 40% of the 8.86 billion won in consolidated revenue reported for 2025. The police have identified specific transactions, including a March 2025 sale of wearable rehabilitation robots to another company and a December 2025 inflation of overseas revenue by claiming European subsidiary sales. Despite strong demand during its IPO, with a subscription ratio of 1,140.11 to 1, shares plunged 29.98% to 7,520 won on September 30 after the news of the investigation broke.
Cosmo Robotics has responded by apologizing to shareholders, denying wrongdoing, and pledging to review its financial and accounting management systems to prevent similar issues. The investigation remains focused on the company's accounting practices and the validity of the disputed transactions.
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