Jente sold luxury goods at a 99% cost ratio to grow revenue, then hit capital impairment

Jente (젠테), a Korean luxury goods platform founded in 2020, reported record revenue of ₩53.7 billion in 2024, up from ₩48.8 billion in 2023, even as its net loss widened to ₩7.89 billion. Investors had pulled back after rival Balaan's troubles, and paid-in capital of about ₩197 million was no longer enough to cover the company's shrinking equity — a partial capital impairment.

The growth was bought, not earned: Jente's cost-of-goods ratio ran at about 99%, meaning it was selling luxury goods at essentially zero margin to keep the revenue line rising while it searched for new funding.

By early 2026 the strategy had reversed on itself. Revenue fell 19.7% year over year to ₩43.1 billion, its accumulated deficit of ₩28.3 billion had eaten through all remaining capital, pushing total equity negative — full capital impairment — and its current ratio fell to just 19%, leaving almost no liquid assets to cover near-term obligations.