R. Belmont, I don't think that's accurate. From what I can tell, SNK has been producing their games in-house again since they bought the rights to their series back from the Korean companies they sold them to earlier, Mega Enterprises (who did Metal Slug 4) and Eolith (who did KOF 2001 and 2002). [Edit: Fixed a stupid mistake here. ^.^;]
Metal Slug 5, Samurai Shodown V, and KOF 2003 seem to have been done by their own internal teams, and the credits have largely Japanese names (the exceptions being the usual silly pseudonyms of indeterminate ethnicity). At least Metal Slug 5, and KOF 2003 (I've not plays SSV) are decent quality; though, as Bumpy says, MS5 wasn't up to MS3. SVC was fun, too, although it feels like it was probably rushed a bit; it's not quite up to SNK's usual quality, though it's definitely a lot better than Eolith's first try at KOF.
[Edit: Ah, I'm wrong about SSV, though. It was contracted out, though it was farmed to a low-quality Japanese developer rather than a low-quality Korean one. :b)