Consumer 'buycott' lifts Hansung Enterprise stock to daily limit, averting delisting fears

Hansung Enterprise's stock price surged to its daily limit of 6,510 won, a significant recovery after facing delisting concerns due to poor performance. The company's market capitalization climbed to approximately 40.4 billion won, surpassing the 30 billion won threshold required to maintain its listing on the KOSPI index since the beginning of July.

Previously, Hansung Enterprise, known for its "Kreami" crab sticks, saw its market capitalization drop to 26.1 billion won by the end of June. With the KOSPI's market capitalization requirement increasing to 30 billion won this month, the company faced a real possibility of being delisted.

The turnaround was fueled by a "buycott" movement originating online after the company's 25-year sponsorship of the "Concert for Heroes," an event honoring UN veterans, gained widespread attention. Social media buzzed with support, with comments like "This is a company that should be saved" and "We can't let Kreami go." Consumers actively purchased Hansung Enterprise products, posting proof online, while some investors joined in by buying shares.

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We are cautious, wondering if we have received too much praise.

In a statement released on July 7, Hansung Enterprise expressed deep gratitude for the recent online praise and support. However, the company also conveyed a sense of caution, stating, "We are cautious, wondering if we have received too much praise." They added, "We hope that the service and dedication of the heroes who sacrificed for our country become more widely known."

Despite the surge, the delisting risk has not entirely disappeared. Under the revised regulations, if the market capitalization remains below the threshold for 30 consecutive trading days, the stock will be designated as "under management." If the standard is not met within a subsequent period, delisting will follow. Therefore, a temporary stock price increase alone may not be sufficient to avoid these regulations.

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We hope that the service and dedication of the heroes who sacrificed for our country become more widely known.