Kremy products made by Hansung Enterprise [Hansung Enterprise]
Kremy products made by Hansung Enterprise [Hansung Enterprise]

Veteran support, homegrown ballpoint legacy spark buying frenzy

Monami at 38.6b won, Hansung Enterprise at 57.7b won

Next threshold rises to 50b won in Jan.; earnings improvement key

Kospi-listed Monami and Hansung Enterprise have pulled back from the brink of delisting after retail investors, rallying behind the companies' backstories, drove their share prices sharply higher. Both stocks have cleared the 30 billion won delisting threshold by a wide margin, though a tougher 50 billion won ($33.2 million) standard takes effect in January, keeping the pressure on.

Monami closed Monday at 2,040 won, giving it a market cap of 38.6 billion won. The stock had been trading between 1,400 and 1,500 won on Wednesday, falling below the 30 billion won delisting floor. It then surged more than 20 percent on each of the following two days — Thursday and Friday — to climb back above the threshold.

Hansung Enterprise hit the daily upper limit on both Thursday and Friday. The stock closed Monday at 9,300 won, pushing its market cap to 57.7 billion won — more than double its intraday low of 3,945 won on June 26.

The rally in both stocks originated on online communities and social media. For Hansung Enterprise, the catalyst was renewed attention to its 25-year history of sponsoring UN veterans. The "Concert for Heroes" was conceived by Hansung Enterprise Chairman Lim Woo-geun after he visited Arlington National Cemetery in Washington, D.C., during a business trip to the United States in 2009. Lim subsequently founded the Korea National Defense Culture Promotion Association and has served as its chairman, organizing 25 concerts through last year with support from like-minded companies. This year's event is scheduled for November.

Once the story spread, consumers began posting proof-of-purchase photos of the company's flagship product Kremy alongside stock-buying certifications. Orders flooded into the company's own online store, Hansung Market, leaving some products sold out and causing delivery delays.

[Monami]
[Monami]

Monami drew buyers on the strength of its identity as a homegrown stationery brand. The company traces its roots to Gwangsin Chemical Industry, founded in 1960 by the late honorary chairman Song Sam-seok, and in 1963 introduced the "153 Ballpoint Pen" — the first domestically produced ballpoint pen in South Korea. Its role as a Japanese-product alternative during the 2019 boycott movement was also widely cited. Posts on stock forums and Monami's official social media accounts included messages such as "A patriotic company must be protected by its people," "I bought 50 shares as a form of donation," and "Monami was part of my school days."

Responding to the outpouring of support, Hansung Enterprise posted a letter of thanks on its website Monday, saying it was "happy about the great affection and encouragement, but also a little cautious about whether we alone are receiving too much praise." The company described the concert series as "an event sustained by the sponsorship of like-minded companies and the volunteer efforts of musicians, not just ourselves." It also corrected a claim circulating online that it uses 100 percent domestic raw materials, saying it "strives to prioritize domestic ingredients but also uses overseas materials based on quality and cost considerations."

Monami President Song Jae-hwa posted a handwritten letter of thanks on the company's website and official social media accounts Saturday, writing that "the support and encouragement you have shown Monami, even in this difficult situation where delisting was a real possibility, has been a great source of strength." Song is the grandson of the late founder, honorary chairman Song Sam-seok.

The Kospi market cap delisting threshold was raised to 30 billion won on July 1 and will rise again to 50 billion won on Jan. 1 next year. The Kosdaq threshold rises from 20 billion won to 30 billion won over the same period. Enforcement rules have also been tightened: a company that falls below the threshold for 30 consecutive trading days is designated a managed issue, and if it then fails to stay above the threshold for 45 consecutive trading days within the following 90 trading days, it faces delisting.

Analysts caution, however, that the share price gains at both companies need to be underpinned by genuine earnings improvement over the long term, given that the recent declines were closely tied to deteriorating results. Monami swung to an operating loss of 2.3 billion won in 2023, which widened to 3.8 billion won in 2024 and 5.9 billion won last year. The company posted a further operating loss of 2.7 billion won in the first quarter of this year. Hansung Enterprise recorded sales of 318.4 billion won and operating profit of 5.8 billion won last year, both down from the previous year.


hong@heraldcorp.com