Monami and ENEX See Stock Surge from 'Patriotic Theme'... Can the Rally Last?

Monami and ENEX Hit Daily Price Ceilings Amid 'Patriotic Buying' Trend

Monami Jumps 102% in a Week... ENEX Hits Limit Up for Two Consecutive Days

Thematic Surge Lacks Management Catalysts; Improvement in Fundamentals Remains Key

The wave of 'patriotic buying' that started with Hansung Enterprise is now spreading to other long-standing domestic companies such as Monami and Enex. With the listing maintenance requirements having been tightened from this month, efforts to support companies facing delisting risk have spread, boosting stock prices. However, since this surge is not backed by operational improvements, whether this buying trend will translate into improved performance and strengthened fundamentals remains a key question.

According to the Korea Exchange on July 15, both Monami and Enex hit their upper price limit the previous day, closing at 2,650 won and 1,631 won, respectively. Monami’s share price jumped 102.3% in a week, from 1,310 won on July 7 to its closing price, and Enex hit its upper limit for two consecutive days starting on July 13. Trading volumes were also high, with 4.56 million shares of Monami and 3.32 million shares of Enex changing hands, indicating a massive inflow of buyers.

The surge in stock prices is rooted in the recent spread of 'patriotic buying' online. As of this month, the minimum market capitalization requirement for remaining listed on the KOSPI has been tightened to 30 billion won and will be raised to 50 billion won in 2027. This has highlighted delisting concerns for the two companies, which have suffered from poor results and falling share prices. In response, the patriotic buying that had rallied around Hansung Enterprise has spread to Monami and Enex—two domestic companies with over 50 years of history known for their social contributions.

Monami has managed to avoid immediate delisting concerns. As of July 9, Monami's market capitalization stood at 32.3 billion won, exceeding the current 30 billion won listing maintenance standard, and it rose to 50.1 billion won the previous day. Although Enex’s market cap was 19.3 billion won the previous day—still short of the threshold—the continued fall in its share price since a reverse stock split appears to have stopped, raising hopes for a rebound.

It is unclear, however, whether this upward trend will continue. History shows that theme-driven price surges not supported by performance improvement or positive business factors typically fade once the related topics die down, resulting in stock price declines.

Monami has long been considered a representative patriotic and anti-Japan thematic stock. In July 2019, when Japan restricted semiconductor material exports and the boycott of Japanese goods reached its peak, Monami was at the forefront as a 'patriotic stock.' Ahead of National Liberation Day, Monami launched limited-edition products such as the 'Liberation Day Package' and the '153 Mugunghwa,' and sales in August of that year soared more than 1,000% year-on-year. The company’s share price also surged in August 2023, during the controversy over the release of contaminated water from the Fukushima nuclear plant.

Enex, meanwhile, was previously classified as a political theme stock before becoming associated with patriotic buying. It hit its upper price limit in April 2025 after being mentioned as a beneficiary of Lee Jae-myung’s basic housing policy, just ahead of former President Yoon Suk Yeol’s impeachment ruling. However, both the patriotic consumer boom and policy beneficiary expectations failed to result in tangible performance improvements, causing the rally to lose steam.

Both companies are still struggling with underperformance. Monami posted an operating loss of 2.7 billion won in the first quarter of this year. Enex, after breaking a five-year streak of losses in 2024, fell back into the red with a first-quarter operating loss of 2.8 billion won this year.

Ultimately, the urgent task for both companies now is to turn online interest and individual investor support into real gains in corporate value. Industry watchers argue they must achieve a turnaround in earnings through recovery in their core business competitiveness and success in new ventures. Whether the recent surge in domestic buying for these long-standing legacy brands will turn into yet another flash in the pan or trigger genuine business improvements hinges on their future performance.

This year, Monami has revamped its leadership, placing the third-generation owner at the forefront and focusing on organizational reform and strengthening its fledgling cosmetics business. Enex recently launched the ‘ENEX 3.0 Promotion Committee’ with plans to expand into solo and senior living, as well as beauty and wellness spaces, aiming to lay the groundwork for sustainable growth.

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