Monami is moving to build a next-generation management system by expanding the participation of the Oner third generation in management. However, with stagnating growth in the stationery market and worsening profitability, a recovery in results has emerged as a more urgent task than succession. Along with the limits of growth in the stationery market, outcomes in new businesses are also uncertain.
According to the Financial Supervisory Service's electronic disclosure system on the 1st, Monami's borrowing fund in the first quarter of this year was 87.3 billion won, up about 11% from the end of last year. As net borrowing fund also increased to 57.7 billion won, the capital procurement ratio worsened from 38.7% to 42.6%. The capital procurement ratio is an indicator showing the share of net borrowing fund in the total funds Monami procures; the higher the figure, the greater the reliance on borrowing fund. As losses continue, the burden of borrowing is also growing.
Monami is a company founded in 1967 by the late Honorary Chairman Song Sam-seok. It started as Monami Chemical Industry and changed its name to Monami in 1974. The "153 ballpoint pen," known as the "national ballpoint pen," sold 3.3 billion units over about 40 years thanks to high name recognition and value for money, making Monami Korea's No. 1 stationery company.
Last year, just before the Korea-U.S. summit, President Lee Jae-myung used a Monami pen to sign the White House guest book. At the time, U.S. President Donald Trump called it a "nice pen," drawing significant attention.
Despite recent changes in the governance structure and succession landscape, market attention is focused on results. Song Ha-kyung, the eldest son of the founder who had led the company since 1993, stepped down to become honorary chairman, and Song Ha-yun, the founder's third son who had served as president since 2018, was promoted to vice chairman and CEO.
Chairman Song remains the largest shareholder with a 13.76% stake, but Vice Chairman Song Ha-yun has moved to the forefront of management. As Song Jae-hwa, head of planning and the eldest son of Chairman Song Ha-kyung, was also promoted to president, the outline of the next-generation management system has become clearer. Vice Chairman Song Ha-yun and President Song Jae-hwa hold 5.13% and 1.87% of Monami equity, respectively.
However, separate from the succession process, the management report card is worsening. On a consolidation basis, Monami posted operating losses of 1.4 billion won in 2023, 3.8 billion won in 2024, and 5.8 billion won last year, with the deficit expanding for three consecutive years. In the first quarter of this year, it also recorded an operating loss of 2.7 billion won, continuing weak profitability. With the decline in the school-age population and the spread of digitalization slowing growth in the traditional stationery market, new businesses such as cosmetics and online sales are also failing to deliver clear results.
In November last year, Monami merged Hangso, a separate entity that had maintained a profit-making trend. Hangso imports and distributes premium stationery brands such as Parker and Waterman, and had retained earnings of 42 billion won as of 2023. Despite the merger, financial strength did not improve. The debt ratio rose from 98.34% in 2023 to 117.76% last year, and return on equity (ROE) was -13.17%.
An analyst at a securities firm opened by saying, "Monami is a corporations that has fallen off the radar among securities firms." The analyst added, "Monami has broadened its product lineup, including kitchen markers, through collaborations with several corporations, and is also developing a cosmetics business centered on Monami Cosmetic," and noted, "At this point, monetizing new businesses matters more than succession or governance, and only when results come will the corporations' value be reappraised."
Monami has laid out a blueprint to diversify its business by boosting online distribution competitiveness and entering the digital stationery market. A Monami official said, "We will respond proactively to market changes and do our best to strengthen business competitiveness, achieve sustainable growth, and enhance shareholder value."