Stationery manufacturer Monami soared to its daily price limit early in the session on July 15, skyrocketing more than 187% this month alone. HanSung Enterprise, grouped in the same “patriotic theme stock” category, also surged over 15%, but the Korea Exchange responded with aggressive measures—designating Monami as an investment warning stock and issuing a trading suspension notice for HanSung Enterprise.
As of 9:15 a.m., Monami was trading at 3,445 won (approximately $2.31), up 795 won (30.00%) from the previous session. The stock opened at 3,125 won (approximately $2.10) and shot straight to the daily price limit within seven minutes of the market opening. At the same time, HanSung Enterprise was up 15.49% at 12,900 won (approximately $8.65).
The surge in these stocks is attributed to the so-called “patriotic buying” frenzy that began earlier this month, reignited by a broader rebound in South Korea’s stock market. Monami’s market capitalization stood at just 22.7 billion won (approximately $15.2 million) based on the June 30 closing price of 1,200 won per share. The company faced potential delisting after the KOSPI raised its minimum market capitalization threshold for continued listing from 20 billion won to 30 billion won (approximately $13.4 million to approximately $20.1 million) starting this month. However, sentiment reversed as a movement to save domestic companies gained traction on social media and online communities. With today’s daily limit up, Monami’s market cap has jumped to the 50 billion won (approximately $33.5 million) range, with its July gain alone reaching 187.08%.
HanSung Enterprise also rode the “patriotic theme” wave amid its own delisting crisis. The company, well-known for its “Crammy” brand, attracted concentrated buying from retail investors after it came to light that it has sponsored concerts for Korean War veterans for 25 years. Monami had previously cemented its “patriotic stock” image in 2019 when it gained attention as a domestic alternative to Japanese stationery products during Japan’s export restrictions on semiconductor materials to South Korea. At that time, Monami’s stock price skyrocketed more than 250% in a single month.
However, as share prices spiked in a short period, the Korea Exchange immediately stepped in with investor cautionary measures. The exchange designated Monami as an investment warning stock on July 14. On the same day, it went a step further with HanSung Enterprise, issuing a trading suspension notice. HanSung Enterprise is currently under investment warning status. If its closing price on July 15 rises more than 40% from the previous session’s close (July 13) and exceeds the closing price on the day before the investment warning designation, trading will be suspended for the entire day on July 16.
Despite these regulatory measures, retail investors’ buying fervor shows little sign of cooling. On July 14, HanSung Enterprise closed up 20.11% at 11,170 won (approximately $7.49), while Monami finished 29.9% higher at 2,650 won (approximately $1.78). HanSung Enterprise’s stock price, which was at 4,300 won (approximately $2.88) earlier this month, has surged 159.77%, and Monami is also tracing a steep upward curve.
The “patriotic theme stock” frenzy is spreading to other names. Furniture manufacturer Enex surged 29.96% to close at 1,631 won (approximately $1.09) on July 14, as attention was drawn to its consistent donations of student furniture, beds, and storage cabinets to childcare facilities and welfare organizations. Domestic women’s underwear brand Vivien also jumped 29.89% to close at 8,170 won (approximately $5.48), as its history of being classified as a patriotic theme stock in 2019 was revisited.
Stock market experts are expressing concern over this phenomenon. They point out that the speculative overheating is intense, and that temporary buying aimed at avoiding delisting is pushing stock prices well above fundamentals. The Korea Exchange’s successive investment warning designations serve as a strong caution against these abnormal surges. An official from the financial investment industry said, “Stocks that have seen vertical price increases in a short period carry significant risk of sharp declines if profit-taking selling floods in. Investors need to exercise particular caution, especially given that the possibility of trading suspension remains on the table.”