As of the 10th of last month, Hansung Enterprise’s stock jumped nearly 80% over five days, swelling its market capitalization to 52.5 billion won and easing concerns over a potential delisting. Captured from Naver Pay Securities
Monami, which released a ballpoint pen to mark the 81st anniversary of Korea’s liberation, announced that all sales proceeds will be used to support the descendants of independence patriots. Yonhap News
Captured from Hansung Enterprise’s official website
The frenzy over so-called “patriot stocks” — shares that surged on a public campaign to save homegrown companies at risk of delisting — is cooling rapidly. One stock has shed more than 60% from its peak in just a month, giving back most of its gains and exposing the limits of “support investing” that is not backed by earnings.
Monami Down More Than 60% in a Month, From 3,730 Won to 1,353 Won
Monami closed at 1,353 won on the 21st, down 5.98% from the previous session, according to the Korea Exchange (KRX). That marks a 63.7% drop from its peak of 3,730 won reached on the 16th of last month.
After sliding through most of this year, Monami’s shares began climbing sharply last month in tandem with tightened delisting rules. Renewed attention to the fact that the company is a homegrown brand that replaced Japanese-made writing instruments during a boycott of Japanese products spread on social media, along with proof-of-purchase and proof-of-buying posts for its stock. The stock, trading around 1,200 won late last month, nearly tripled in about two weeks.
Hansung Enterprise, known for its “Crami” imitation crab brand, followed a similar path. Its shares, at 4,145 won on June 26, jumped steeply as the “save patriotic companies” movement gained momentum. On the 10th of last month, the stock closed at 8,460 won, up 29.95% for its second straight daily limit gain, and rose nearly 80% over five days, swelling its market capitalization to 52.5 billion won and easing its immediate delisting concerns.
The rally continued, reaching 14,520 won on the 15th of last month. But the stock then reversed course, falling to 5,150 won by the 21st, about 64.5% below its peak.
One direct trigger behind both stocks’ gains was the tightened listing-maintenance standards. Starting on the 1st of last month, the Korea Exchange raised its market-capitalization thresholds to 30 billion won for the KOSPI and 20 billion won for the KOSDAQ. On the 3rd of last month, the third day the rule was in effect, Hansung Enterprise’s market capitalization stood at 26.2 billion won and Monami’s at 25 billion won, both below the threshold.
‘Stop the Delisting’: Veterans’ Support and Homegrown Stationery in the Spotlight
The “patriot stock” craze began with the tightened listing-maintenance standards last month. Starting on the 1st of last month, the Korea Exchange raised its market-capitalization thresholds to 30 billion won for the KOSPI and 20 billion won for the KOSDAQ. On the 3rd of last month, the third day the rule was in effect, the market capitalizations of Hansung Enterprise and Monami stood at 26.2 billion won and 25 billion won respectively, both below the threshold.
Once the delisting risk became known, a “save patriotic companies” movement spread online. As word got out that Hansung Enterprise had sponsored concerts for Korean War veterans for 25 years, proof-of-purchase and proof-of-buying posts followed. Monami drew attention as a “homegrown stationery company,” while Enex, which has donated furniture to welfare facilities, and domestic underwear brand Vivien were also grouped as “patriot stocks.”
As the shares surged, market capitalizations also swelled rapidly. On the 16th of last month, Hansung Enterprise reached 90.1 billion won and Monami 70.4 billion won, while Vivien and Enex recorded 33.1 billion won and 32.6 billion won respectively.
In little more than a month, the mood reversed completely. As of the 21st, market capitalizations had shrunk to 31.9 billion won for Hansung Enterprise, 25.5 billion won for Monami, 23 billion won for Vivien and 25.9 billion won for Enex. Monami, Vivien and Enex in particular fell back below the 30 billion won KOSPI listing-maintenance threshold.
Some noted, however, that the earlier price gains were hard to explain by retail investors’ “patriotic buying” alone. From June 29 to July 10, when Hansung Enterprise began rising in earnest, other corporations and institutions net-bought 225.27 million won and 100.42 million won worth of shares respectively, while retail investors net-sold 118.24 million won worth.
Share Consolidations Followed, but Survival Ultimately Hinges on Earnings
In the end, earnings are the key. Monami’s consolidated revenue for the first half of this year fell 5.6% from a year earlier, while its operating loss widened 69%. With demand for writing instruments continuing to decline, the company has yet to show clear results in cosmetics, its new business. Hansung Enterprise’s earnings are also slipping.
The number of companies pursuing share consolidations in response to the tightened delisting rules has risen sharply. According to Hanwha Investment & Securities, 276 share consolidations were pursued in the domestic stock market between February 12 and August 12, far exceeding the five over the same period in 2024 and 12 last year.
But share consolidations alone did not easily prop up share prices. Of the 156 cases that completed new-share listings after a stock consolidation between February 12 and July 15 this year, 130 (83.3%) were trading lower on July 15 than on their new-share listing date.
The bar for staying listed will rise further next year. From January, the market-capitalization thresholds will be raised to 50 billion won for the KOSPI and 30 billion won for the KOSDAQ, making it even harder to escape delisting risk through a temporary price spike alone.
Eom Su-jin, an analyst at Hanwha Investment & Securities, predicted that even companies that avoid being designated as administrative issues through measures such as share consolidations could face a harsher market assessment without real change, such as revenue growth, improved profitability, or business expansion through mergers and acquisitions.