The Monami Store at Stallit Seongsu, first floor, Seongdong-gu, Seoul [Monami]
The Monami Store at Stallit Seongsu, first floor, Seongdong-gu, Seoul [Monami]

Monami, the South Korean stationery brand that had been on the verge of delisting, saw its share price surge amid a wave of "patriotic stock" buying, pulling it back from the brink — and its president has now stepped forward with a personal letter of gratitude.

Monami posted a handwritten letter from President Song Jae-hwa on its official social media accounts Friday. Song said he felt "deeply moved and acutely aware of the weight of responsibility as he watched the wave of support for Monami spreading online," extending his thanks to shareholders and the public alike.

"Even in the difficult situation where delisting was a real possibility, the hearts of those who believed in Monami, cheered us on and stood by us became a source of strength that nothing could replace," Song wrote. "Thank you for proving that the 60-plus years Monami has walked were not in vain."

"Using the ground you have protected as our foundation, we will repay you with better products and genuine quality," he added. "Monami has been part of recording Korea's story, and we will continue to stand firmly by your side. From the bottom of our hearts, thank you."

The crisis was triggered this month when the Kospi delisting threshold for market capitalization was raised from 20 billion won ($13.3 million) to 30 billion won, putting Monami at immediate risk.

The company's market cap stood at 24.8 billion won on Tuesday and 25.9 billion won on Wednesday, both below the new 30 billion won threshold, but a 24.69 percent surge on Thursday pushed it back above the limit at 32.3 billion won.

On Friday, Monami shares climbed another 25.66 percent to 2,145 won, lifting its market cap to 40.5 billion won.

Monami first gained its image as a "national brand" during the 2019 "No Japan" boycott movement, when consumers turned to domestic alternatives to Japanese stationery products. Analysts say the latest share price rally was fueled in part by investors' association of the brand with patriotism.

However, the company has been struggling with weak earnings amid a declining school-age population and has been expanding into cosmetics ODM (original design manufacturing) — though analysts say reversing the earnings slump in the near term will be difficult.

Investors flooded stock community forums with supportive comments, including "A patriotic company must be protected by the people," "I was so moved by the Monami community that I bought a ballpoint pen," "It cannot be delisted," "I joined in to save a patriotic company," and "I bought 50 shares as if making a donation."

The post carrying Song's letter of thanks also drew comments such as "From now on, Monami for all my gifts," "Monami was part of my school days — hang in there," "Don't give up, Monami," "Don't go under — survive for a long time," and "I'll buy shares on Monday."


ygmoon@heraldcorp.com