Hansung Enterprise, a seafood processing company known for its Crabmi brand, recorded an upper limit gain of 29.94% to close at 6,510 won on the 9th according to the Korea Exchange. The stock surge followed online support calling the company a 'patriotic enterprise' after social media posts highlighted its 25-year sponsorship of concerts for Korean War veterans. Last month the company's stock had fallen to the 4,200 won line and its market capitalization shrank to 26.1 billion won, raising delisting concerns under strengthened KOSPI listing maintenance standards that require market cap above 30 billion won from this month.
Hansung Enterprise Stock Rises 50% Over Four Trading Days
Hansung Enterprise experienced four consecutive trading days of gains with a cumulative rise exceeding 50%. The company's market capitalization grew to approximately 40.4 billion won on a closing basis. The stock had faced delisting risk as recent raw material price increases and deteriorating profitability led to poor performance, with market cap falling below 30 billion won at one point.
Online Campaign Supports Company After 25-Year Veterans Concert Sponsorship
The turnaround began when information about Hansung Enterprise's 25-year sponsorship of 'Concert for Heroes' for Korean War veterans spread through social media and online communities. Online reactions included statements such as "Can't let Crabmi die" and "Patriotic companies must survive." Consumers posted verification photos after purchasing Crabmi and other Hansung Enterprise products, while some investors purchased shares to join the support effort. Discussion boards featured comments including "Congratulations on the upper limit in a merciless stock market" and "There is romance in the stock market too."
Hansung Enterprise Posts Gratitude Statement on Homepage
Hansung Enterprise posted 'Words of Gratitude' on its homepage on the 9th, stating "We sincerely thank you for your warm and great interest and support." The company noted that while being called a 'patriotic company' was an excessive honor, the recognition was due to corporate sponsorship and musicians' volunteer service. The statement clarified: "We saw posts viewing us favorably as a 'domestic raw material company.' However, we also selectively use raw materials from various countries. We want to prevent misunderstanding." The company added: "As we have since our first voyage in 1963, we will do our best to make good food that everyone can enjoy deliciously. We deeply thank you once again for your excessive love."
FAQ
What caused Hansung Enterprise Korean stocks to record an upper limit gain on the 9th?
Hansung Enterprise recorded a 29.94% upper limit gain to 6,510 won on the 9th according to the Korea Exchange, driven by online support after social media posts revealed the company's 25-year sponsorship of concerts for Korean War veterans.
How much did Hansung Enterprise's market capitalization change during the recent stock surge?
Hansung Enterprise's market capitalization grew from 26.1 billion won last month to approximately 40.4 billion won on a closing basis, following four consecutive trading days of gains with a cumulative rise exceeding 50%.
