Monami(005360) is expanding the Oner third generation's participation in management and moving to build a next-generation management system. However, as the stationery market's growth stalls and profitability worsens, restoring performance has emerged as a more urgent task than succession. Along with the limits of growth in the stationery market, the outlook for new businesses is 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. Net borrowing also rose to 57.7 billion won, and the capital procurement ratio deteriorated from 38.7% to 42.6%. The capital procurement ratio indicates the share of net borrowing in the total funds Monami has raised; the higher the figure, the greater the dependence on borrowing. With losses continuing, the burden of borrowing is also growing.
Monami is a company founded in 1967 by the late Honorary Chairman Song Sam-seok. It began 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 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 drew major attention by calling it a "nice pen."
Despite recent changes in governance and the succession structure, market attention is focused on performance. Song Ha-kyung, the eldest son of the founder who had led the company since 1993, stepped back to become honorary chairman, and Song Ha-yoon, the founder's third son who had served as president since 2018, was promoted to vice chairman and CEO.
Although Chairman Song remains the largest shareholder with a 13.76% equity stake, Vice Chairman Song Ha-yoon has taken the helm of day-to-day management. As Song Jae-hwa, head of planning and the eldest son of Chairman Song Ha-kyung, was promoted to president, the outline of the next-generation management system has become clearer. Vice Chairman Song Ha-yoon and President Song Jae-hwa hold 5.13% and 1.87% of Monami's equity, respectively.
However, separate from the succession process, the management scorecard is worsening. On a consolidation basis, Monami posted operating losses of 2.3 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 as well, it recorded an operating loss of 2.7 billion won, and weak profitability continues. As the decline in the school-age population and the spread of digitalization slow growth in the traditional stationery market, new businesses such as cosmetics and online sales have also failed 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 liability 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 even among securities firms." The analyst added, "Monami has expanded its product lineup, including kitchen markers, through collaborations with several corporations, and is also developing its cosmetics business centered on Monami Cosmetic," and noted, "At this point, monetizing new businesses matters more than succession or governance, and only if results come will the corporations value be reassessed."
Monami has outlined a blueprint to diversify its business by boosting its 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, pursue sustainable growth, and enhance shareholder value."