Cosmo Robotics Shares Plunge Amid Pre-IPO Revenue Inflation Probe

Cosmo Robotics, a South Korean technology firm, is currently facing legal scrutiny over accusations that it overstated its revenue figures before going public. Investigations by the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit suggest the company may have inflated its 2025 revenue by roughly $2.58 million by including sales of robots that never actually occurred.

This revelation triggered a dramatic drop in the company's share price following the disclosure. Cosmo Robotics' shares plummeted 30% to a daily low after the news broke, despite strong investor interest leading up to the company's initial public offering. The company's IPO received record demand, with institutional investors putting in bids at a 1,140:1 subscription ratio.

However, the allegations have cast doubt on the legitimacy of the revenue numbers presented during the IPO process. Police have identified specific transactions where it is alleged Cosmo Robotics recorded inflated sales figures, including a March 2025 sale of wearable rehabilitation robots to another company and a December 2025 overstatement of overseas revenue.

In response to the probe, Cosmo Robotics has apologized to shareholders, denied any wrongdoing, and pledged to overhaul its financial and accounting practices to prevent similar issues from happening again. The investigation into the company's accounting methods and the validity of the disputed transactions is ongoing, with the outcome potentially impacting Cosmo Robotics' eligibility to remain listed on the KOSDAQ stock exchange.