Kim Chang-won, CEO of 3billion Inc., also expressed confidence, stating, “We will be able to reach the break-even point (BEP) by the end of next year.” He explained that, given the current upward trend in revenue, if the company achieves revenue of “around 25 billion won” next year, its first-ever return to profitability is clearly within reach from a mathematical standpoint. Farm Daily conducted an in-depth analysis of the internal financial basis for 3billion Inc.’s confidence in turning a profit, as well as the progress of establishing its U.S. subsidiary.
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3billion Inc.’s “Texas Landing Operation”… A Look at the Progress
According to the pharmaceutical and biotech industry on the 6th, 3billion Inc. began establishing a full-fledged local presence by setting up a subsidiary in Texas during the first half of this year. In particular, by signing an official “Chapter 380 Economic Development Agreement” with the City of Austin, Texas, the company has secured a practical foothold for its entry into the North American market. This marks official approval by the U.S. local government, which has recognized the company as a key partner in the regional innovation ecosystem and agreed to provide employment grants and financial incentives.
As a result, the Texas operations are progressing rapidly. According to a local Austin newspaper, 3billion Inc. is currently constructing a state-of-the-art genomic analysis laboratory spanning approximately 13,000 square feet (about 365 pyeong) in the northeastern part of Austin. The facility is expected to feature infrastructure capable of independently processing up to 50,000 genomic tests annually. The direct economic impact on the city of Austin is estimated to total $8.1 million.
Once certification under the U.S. Clinical Laboratory Improvement Amendments (CLIA) is obtained, samples will no longer need to be sent to South Korea; instead, they can be analyzed immediately at the local laboratory, which is expected to dramatically speed up the issuance of diagnostic reports.
Austin, Texas, also offers bright strategic market prospects as a springboard for entering the U.S. market. Texas, the second-largest economy in the U.S., is home to a concentration of major healthcare networks and research infrastructure and is emerging not only as the “second Silicon Valley” but also as a key global hub for the life sciences. 3billion Inc. plans to recruit a large number of highly skilled engineers and STEM professionals in Austin to strengthen close collaboration with local medical professionals.
3billion Inc. representative explained, “While it is difficult to provide specific details, we expect our U.S. services and sales network to be fully operational in the second half of the year,” adding, “We will expand our market share in the U.S. rare disease market, which is currently dominated by ZindiX.”
Is a Return to Profitability Mathematically Possible?...Hearing the Company’s Explanation
Once revenue from the U.S. begins to flow in, 3billion Inc. is expected to return to profitability sooner. Geum Chang-won, CEO of 3billion Inc., anticipates the company will return to profitability next year.
The key foundation for 3billion Inc.’s publicly stated goal of turning a profit next year is the so-called “operating leverage effect.” Operating leverage refers to the phenomenon where, as revenue increases, the burden of fixed costs relatively decreases, causing operating profit to rise at a much faster rate than revenue growth. 3billion Inc.’s flagship business, “Full Service” (an AI platform for interpreting genomic mutations), plays a crucial role in this. As of last year, Full Service accounted for a whopping 87.2% of total revenue.
According to the company, an analysis of 3billion Inc.’s cumulative financial data shows that when revenue grows by 100%, the total increase in costs is only about 30%. This 30% cost figure includes not only operating expenses for its core diagnostic services but also research and development (R&D) investment costs for new drug development, which represents a future growth driver. The company explains that if calculations were limited solely to the diagnostic services business model—excluding investments in new drug development—cost efficiency relative to revenue growth would be even more overwhelmingly high.
This highly efficient growth formula is clearly demonstrated by the company’s performance trends over the past three years. 3billion Inc.’s revenue grew from 2.7 billion won in 2023 to 5.8 billion won in 2024, and reached 11.7 billion won last year (2025), continuing to make quantum leaps of roughly double each year. Conversely, operating losses during the same period followed a clear downward trend—8.4 billion won in 2023, 7.4 billion won in 2024, and 5.9 billion won in 2025—as the company narrowed its deficit.
The break-even point (BEP) of “25 billion won in annual revenue,” as presented by CEO Geum Chang-won, is a figure that proactively factors in all the infrastructure costs necessary to target the global market, including fixed costs for operating the research lab, sample processing costs, and personnel expenses for essential R&D specialists. In other words, once the company breaks through the 20 billion won revenue threshold—even without additional large-scale infrastructure investments—a significant portion of the resulting revenue will directly translate into net profit.
CEO Geum predicted, “If this virtuous cycle of growth is maintained steadily over the next three years, we estimate that cost efficiency relative to revenue will improve by more than tenfold compared to current levels,” adding, “By the time we pass the BEP three years from now, we will have transformed into a highly profitable model with a net profit margin reaching as high as the 50% range.”
The workforce structure, centered on specialized professionals, also serves as a powerful shield that defends profitability rather than creating a cost burden. As of the end of last year, 3billion Inc.’s R&D staff totaled 52 people, accounting for 51.5% of the total workforce. This is a group of highly skilled experts, including 11 Ph.D. holders and 26 master’s degree holders. While absolute R&D investment steadily increased from 3.5 billion won in 2023 to 4.0 billion won last year, the ratio of R&D expenses to revenue fell sharply from 129% to 34% over the same period as revenue grew even faster.
Commenting on this, a company official emphasized, “When revenue increases by 100%, the corresponding increase in personnel expenses amounts to only 9% of the total,” adding, “This demonstrates tremendous revenue-generating power—a powerful engine that yields approximately 11 times the increase in personnel expenses per specialist.”
