Hansung Enterprise, a Korean food company known for its 'Kremi' crab stick products, saw its stock price rise 3.78% (175 won) to close at 4,810 won, marking a second consecutive day of gains following a more than 9% surge the previous trading day. The rally occurred after online users belatedly highlighted that the company has sponsored the 'Concert for Heroes' for Korean War veterans for 25 years. Hansung Enterprise faces potential delisting from the KOSPI market as its market capitalization had fallen below the Financial Services Commission's new threshold of 300 billion won, effective from the 1st of this month, with the requirement set to increase to 500 billion won next January.
Financial Services Commission Sets New KOSPI Delisting Thresholds
The Financial Services Commission announced that starting from the 1st of this month, the KOSPI delisting market capitalization threshold would be strengthened to below 300 billion won. The commission scheduled a further increase to 500 billion won starting next January. Hansung Enterprise, which listed on the securities market in 1989, saw its market capitalization fall below 300 billion won in recent periods, triggering delisting concerns.
Retail Investors Launch Buying Campaign After Veteran Sponsorship Revelation
Online users belatedly spotlighted that Hansung Enterprise has sponsored the 'Concert for Heroes' for Korean War veterans for 25 years as of this year. Individual investors responded with statements including "a patriotic company should not collapse like this" and "whether the stock price rises or not, this stock must be bought," leading to a wave of stock purchase certifications that went beyond product purchases. Trading volume, which stood at only a few thousand transactions through the 3rd, jumped to around 300,000 transactions on both the 6th and the 7th.
Trading Volume Surges as Market Cap Crosses 300 Billion Won
According to the Korea Exchange, Hansung Enterprise recorded trading volumes of approximately 300,000 transactions on both the 6th and the 7th, a sharp increase from the few thousand transactions recorded through the 3rd. During this period, the company's market capitalization surpassed 300 billion won. Purchases through the company's online mall also continued, with judgments that stock prices can only hold if supported by performance. A notice was posted stating that delivery may be delayed due to more orders than expected being received.
Hansung Enterprise Issues Statement on Customer Support
The company released a statement on its website stating, "The veterans' event is for the purpose of gratitude," and "We will strive to better convey gratitude and respect to the heroes by incorporating the hearts of customers who love the Republic of Korea." Hansung Enterprise was established in 1963 and led the popularization of crab sticks as the first domestic company to mass-produce them.
FAQ
Why did Hansung Enterprise stock price rise on the 7th?
Hansung Enterprise's stock price rose 3.78% to 4,810 won on the 7th after online users highlighted that the company has sponsored the 'Concert for Heroes' for Korean War veterans for 25 years, triggering a retail investor buying campaign to support what they called a "patriotic company" facing delisting risk.
What is the new KOSPI delisting threshold affecting Hansung Enterprise?
The Financial Services Commission set a new KOSPI delisting threshold of below 300 billion won market capitalization effective from the 1st of this month, with a further increase to 500 billion won scheduled for next January. Hansung Enterprise's market cap had fallen below this threshold before the recent stock rally pushed it back above 300 billion won.
