Dynamic solution

Dynamic Solution, founded in 2010 and listed on KOSDAQ in 2018 as Neofect, has centered its business on the wearable rehabilitation device series marketed under the Neofect Smart brand for stroke and spinal cord injury patients, providing AI- and IoT-based home rehabilitation content.

It also operates a long-term care service segment (including Long Life Green Care), forming two pillars alongside rehabilitation devices.

Following a change in largest shareholder to Yemi Media in August 2025, business diversification accelerated, and at its March 2026 annual general meeting the company changed its name from Neofect to Dynamic Solution, declaring a transformation into a robotics and materials company.

The new business axis has two main tracks: a robotics and brain-computer interface (BCI) business built on the tactile robotic hand technology "X-Hand" transferred from ETRI and a partnership with KAIST-affiliated startup Vivat Robotics; and an inorganic chemical materials business (magnesium-silicate-based gap fillers and heat-dissipation sheets) through an exclusive agreement with Giant Chemical.

In robotics and BCI, the company is participating in the government-led K-Moonshot project overseen by Ybrain, in which it holds a minority stake, jointly developing robotic hands and EEG-transmission software with KAIST.

In materials, Giant Chemical develops core technology while Dynamic Solution handles applied technology, production and sales, with a production facility investment underway in Ulju-gun, Ulsan.

The legacy rehabilitation device business is sold mainly through domestic and overseas hospital and insurance distribution channels, competing with other digital healthcare and rehabilitation robotics players.

The new business segments have yet to generate meaningful realized revenue, making the transition of stable cash flow from the legacy business into funding for new ventures the central challenge.

Annual results show a clear downward trend. Consolidated revenue held near KRW 26.2-26.6 billion in 2022-2023, but fell sharply to KRW 21.1 billion in 2024 and KRW 16.05 billion in 2025, a two-year consecutive decline.

The operating loss narrowed from KRW 7.54 billion in 2022 to KRW 1.78 billion in 2023, then widened again to KRW 2.41 billion in 2024 and KRW 2.90 billion in 2025, with operating margin swinging between -28.8% (2022), -6.7% (2023), -11.4% (2024) and -18.1% (2025).

Net loss attributable to owners narrowed from KRW 9.62 billion in 2022 to KRW 4.96 billion in 2023 and KRW 0.95 billion in 2024, before jumping to KRW 12.3 billion in 2025, creating a large gap versus the operating result.

The gap is even more visible at the quarterly level: in the second quarter of 2025, the company posted revenue of KRW 6.2 billion and an operating profit of KRW 0.52 billion, yet a net loss attributable to owners of KRW 15.08 billion; conversely, in the fourth quarter of 2025, revenue was KRW 4.45 billion with an operating loss of KRW 0.68 billion, but net income attributable to owners was a positive KRW 4.94 billion.

Such large divergences suggest that non-operating items such as derivative valuation related to convertible bonds, or equity-method and disposal gains and losses, have a strong influence on reported results.

Into 2026, the first quarter showed revenue of KRW 3.13 billion, an operating loss of KRW 3.07 billion and a net loss of KRW 5.85 billion, and the second quarter showed revenue of KRW 4.17 billion, an operating loss of KRW 0.95 billion and a net loss of KRW 4.83 billion—signs of a revenue pickup remain, but losses have continued (results from the third quarter of 2026 onward are not yet finalized in disclosures).

On the balance sheet, equity attributable to owners rose sharply from KRW 6.48 billion in 2022 to KRW 53.33 billion in 2025, and the debt ratio fell markedly from 426.1% (2022) to 128.0% (2023), 89.2% (2024) and 46.3% (2025), reflecting the inflow of outside capital through the Yemi Media acquisition and successive convertible bond and rights issuances.

The rehabilitation medical device market is expected to grow over the long term amid population aging and rising numbers of stroke and spinal cord injury patients, yet the company's own revenue in this segment has continued to shrink over the past four years.

By contrast, the brain-computer interface (BCI) market the company has newly entered is one the government has signaled strong intent to cultivate.

The government expects that if the K-Moonshot BCI research and development effort succeeds, it could help Korea secure a leading position in the global BCI market, projected to reach roughly $203.7 billion (about KRW 303.4 trillion) by 2033.

Major domestic corporations including Hyundai Motor, Samsung Electronics, LG AI Research, SK Telecom, NC AI, KT, LG Uplus, and Naver are participating in the K-Moonshot project, placing Dynamic Solution as a partner within this large national consortium.

In robotic hands, through its partnership with KAIST-affiliated Vivat Robotics, the company reported achieving a grip success rate of around 95% in tests using irregularly shaped objects, a level considered competitive against rival technologies.

In inorganic chemical materials, its partner Giant Chemical holds a roughly 90% share of the domestic market, offering a comparatively stable base of raw material and technical support.

However, industry observers have also raised concerns that the new business expansion may not be financially sustainable unless the competitiveness of the core rehabilitation device business is restored.

In the inorganic chemical materials segment, the company stated that it has completed product testing and supply discussions with a major domestic conglomerate referred to as Company L and is nearing final contracts with multiple global and domestic large corporations, with plans to complete a materials plant and begin direct production and delivery within the year.

Earlier, around the time of its name change, the company said it was carrying out a production facility investment in Ulju-gun, Ulsan, with construction to begin early the following month and completion targeted for the second half of the year, making the actual completion and start-up timeline, along with formal contract signings with large corporations, key to future revenue realization.

In robotics and BCI, the company outlined plans to progressively finalize robot development, selection of mass-production partners, equity investments, and formation of the K-Moonshot consortium, while upgrading its existing medical and rehabilitation robot business and concretizing its new industrial robotic hand business.

It has also signed a letter of intent with ETRI for commercializing robotic hands and arms, pursuing follow-on cooperation such as applying wearable technology to virtual-fusion spatial systems.

However, market observers have also noted that while the company has presented a blueprint for new business entry, actual capital deployment has concentrated on real-estate acquisitions linked to its existing business, creating a gap between the growth story presented at the time of the ownership change and actual investment behavior, meaning the pace of execution versus announced plans, and the actual use of funds, both warrant continued monitoring.

A company representative stated that aside from the KRW 20 billion convertible bond decided in March, there are currently no additional plans for external fundraising.