'Delisting Crisis' Looms for Monami as Third-Generation Management Faces Its First Test

Stagnation in Stationery Business and Widening Losses Drive Stock Decline

Market Cap Fell Below 50 Billion Won, Then Slipped Under 30 Billion Won in Mid-May

Third-Generation Management Begins in Earnest

Enhancing Corporate Value Becomes Key Challenge

The stock price of Monami, a stationery company, continues to decline, raising concerns over a potential delisting. In an effort to overcome the stagnant stationery business, which has been identified as the main cause of the falling stock price, the company attempted to diversify into the cosmetics sector. However, meaningful results have yet to be achieved. As Monami declared the full-fledged start of third-generation management this year, this crisis is expected to serve as a major test for the new leadership.

According to the Korea Exchange (KRX) on June 11, Monami's stock closed at 1,310 won as of the previous day's closing price. Monami's stock has been unable to escape its downward trend recently. It started the year at 1,955 won on the first trading day, January 2, but fell to 1,688 won on the day of the regular shareholders meeting at the end of March. Although there seemed to be a rebound after the shareholders meeting, the stock ultimately resumed its decline. On June 8, it hit a new 52-week low of 1,282 won during intraday trading.

The company's market capitalization is also shrinking rapidly. Monami's market cap dropped below the 50 billion won mark on August 28 last year, and then fell below 30 billion won as of May 12 this year. As of the previous day's close, its market capitalization stood at 24.8 billion won, down 32.8% from 36.9 billion won at the start of the year.

The problem is that the listing maintenance requirements for the KOSPI market, where Monami is listed, will be strengthened to 30 billion won in the second half of this year and 50 billion won in 2027. Starting in July, if Monami's market capitalization remains below 30 billion won for 30 consecutive trading days, it will be designated as an issue for management. If the market cap fails to recover above 30 billion won for 45 consecutive trading days out of a 90-day period, the company will become subject to delisting. With less than a month left before the new rules take effect, Monami's stock needs to rise to 1,588 won to meet the 30 billion won threshold, and to 2,646 won—double the current price—to reach 50 billion won.

However, Monami's earnings, which are key to a stock price recovery, have been sluggish for several years. On a consolidated basis, revenue fell for three straight years from 149.5 billion won in 2022 to 131 billion won in 2025. Over the same period, operating profit of 6.2 billion won turned into an operating loss of 5.9 billion won. In the first quarter of this year, revenue was 32.8 billion won, down 2.1% from 33.5 billion won a year earlier, while operating loss widened from 700 million won to 2.7 billion won. During this quarter, Monami also withdrew from its local business in China after 24 years, following repeated poor performance.

The downturn in the stationery industry, driven by a shrinking school-age population, has directly impacted Monami's decline. In 2023, the company announced diversification and established the cosmetics manufacturing subsidiary "Monami Cosmetic," entering the beauty market, but has yet to see results. Monami Cosmetic posted first-quarter sales of 1.9 billion won and a net loss of 1.6 billion won this year.

A Monami official stated, "The company is aware of the delisting issue," adding, "The cosmetics business is still in its early stages and we are exploring ways to grow." Regarding shareholder return policies, the official commented, "We are reviewing them, but there are concerns about whether they can actually boost the stock price," indicating a cautious stance. The company emphasized that improving performance in the cosmetics business is the top priority.

Hayun Song, Vice Chairman and CEO of Monami. Monami

This crisis is expected to serve as a litmus test for the third-generation management. In March, Monami carried out a generational shift at the shareholders meeting. Hayoung Song, the eldest son of late founder Song Samseok, stepped down to become honorary chairman, while the third son, Hayoon Song, was appointed Vice Chairman and CEO. The eldest son of the honorary chairman, Jaehwa Song, was also promoted to president with responsibility for corporate planning, solidifying the third-generation management structure. Monami plans to use this leadership change as an opportunity to fully implement a mid- to long-term roadmap aimed at enhancing corporate value.

This content was produced with the assistance of AI translation services.