IQ Lab Faces Cash Crunch as Contractor Pulls Out Over Unpaid 80 Million Won

What happened

IQ Lab is facing a cash shortage after the Korea Development Bank (KDB) delayed funding amid a police investigation into the company over suspected inflated revenue. According to industry sources on Oct. 15, contractor A, responsible for utilities at IQ Lab's semiconductor fabrication plant, plans to withdraw by the end of this month over unpaid bills of 80 million won, and IQ Lab is expected to replace the contractor's personnel with in-house staff. A final equipment payment of 500 million won is also overdue: KDB purchased five high-temperature annealing systems for silicon carbide (SiC) MOSFETs from semiconductor equipment supplier B and installed them at IQ Lab's fab, and after KDB withheld the final payment, supplier B blocked operation of the equipment, leaving IQ Lab unable to use the systems to produce SiC MOSFETs. KDB had agreed to provide 60 billion won in financing for fab equipment purchases, making advance, interim and final payments on IQ Lab's behalf, but suspended final payments after legal risks surrounding IQ Lab emerged; the withheld amount totals approximately 13 billion won. IQ Lab said it has been using its own funds to make final payments on some equipment purchases, causing delays in other payments. The company posted an operating loss of about 18 billion won last year, its unpaid bills to contractors are estimated at several billion won, some contractors have reportedly been unable to pay employee salaries, and further contractor withdrawals are expected. The Busan Metropolitan Police Agency is examining IQ Lab's revenue records dating back to 2021, focusing on used equipment transactions, which accounted for more than one-third of IQ Lab's 35.1 billion won in revenue last year. The investigation has extended to the Busan Metropolitan Government, where Investment Attraction Division official C was recently questioned as a witness. In 2024, Busan designated IQ Lab a leading company in its power semiconductor specialized industrial complex and provided 3.6 billion won in support when the company relocated its headquarters from Ansan, Gyeonggi Province, to Gijang, Busan; a city official said the investment went through lawful procedures and is covered by guarantee insurance. CEO Kim Kwon-je is reportedly expected to be summoned this month, and IQ Lab expects the initial investigation to conclude within the month.

Impact and signal

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Source and time

Source: The Elec · 10/15/2026 · View original source