This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:15 p.m. on Aug. 24, 2026.
The corporate rehabilitation process for Foodtech startup Jeongyukkak was ultimately terminated. The sale of management control pursued since last year fell through, and efforts to normalize through rehabilitation also failed. As a result, the recovery of venture capital (VC) investments of around 150 billion won in Jeongyukkak is now in doubt.
According to the investment banking (IB) industry on the 24th, the Seoul Bankruptcy Court recently decided to terminate the rehabilitation proceedings for Jeongyukkak. After entering corporate rehabilitation last year, Jeongyukkak pursued a pre-approval merger and acquisition (M&A) but failed to secure a buyer.
Jeongyukkak raised 108 billion won through redeemable convertible preferred stock (RCPS) and convertible preferred stock (CPS) up to its Series D round in 2022. Its cumulative investment, including common stock, is known to be about 150 billion won. Major investors include Atinum Investment, Premier Partners, Capstone Partners, Stonebridge Ventures, KDB Industrial Bank, and NH Investment & Securities.
Follow-on funding also continued. In March 2024, NH Investment & Securities, Atinum Investment, and Capstone Partners invested about 10 billion won more. Shinhan Capital converted an existing 30 billion won bridge loan into acquisition financing with a two-year maturity.
Jeongyukkak's ownership structure split equity between CEO Kim Jae-yeon and multiple financial investors (FI). Major shareholders included Kim (16.34%), Atinum Investment (7.93%), and Capstone Partners (6.75%). Premier Partners held 9.9% through the "2020 Premier Scale-up Investment Partnership" and the "2022 Premier Scale-up Investment Partnership."
In bankruptcy proceedings, a trustee liquidates company assets and repays creditors according to the priority set by law. Foundation claims such as wages and severance are handled first, followed by repayment of claims with separate priorities such as security interests and general bankruptcy claims. Only if assets remain after that do shareholders receive residual assets.
The RCPS and CPS held by VCs are equity securities with the character of stock and therefore cannot be repaid with priority like ordinary loan claims. In particular, for corporations like Jeongyukkak, whose liabilities exceed assets, there is little likelihood that assets will remain for shareholders after creditor repayment. The industry expects that most of the VCs' investments will likely be recognized as losses.
The path of Jeongyukkak's subsidiary Chrocmaeul is diverging. Chrocmaeul is pursuing independent normalization as a creditors' group—comprising partner companies, franchisees, and eco-friendly farms—moves to acquire it. Jeongyukkak acquired Chrocmaeul in 2022 by investing about 90 billion won.