[Featured Stock] Crown Haitai Holdings, Expectation of Benefit from Military Facility Protection Zone Lift 'Up'

On the 11th, six days after the previous launch, North Korea fired a projectile presumed to be a ballistic missile again. From Odusan Unification Observatory in Paju, Gyeonggi Province, the North Korean flag is fluttering in Gijeong-dong village on the northern side of the western frontline Demilitarized Zone (DMZ). Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ji Yeon-jin] Crown Haitai Holdings, which owns a large-scale site near the Demilitarized Zone (DMZ), recorded a daily upper limit price on the 14th following news that the ruling party and government decided to lift the military facility protection zone.

From 9:30 a.m. on the same day, Crown Haitai Holdings was traded at 19,000 won, up 29.61% (2,490 won) compared to the previous day.

Crown Haitai Holdings is known to own a 1 million-pyeong site in Yangju near Paju through its unlisted affiliate Art Valley (formerly Haesung Nonglim). As of the end of 2020, the book value of the land (forest area 3,112,511㎡) owned by Art Valley was 63.3 billion won.

Earlier, the Democratic Party of Korea and the government announced that they would lift the military facility protection zone covering 9,053,894㎡ (approximately 2.74 million pyeong), which is 3.1 times the area of Yeouido.

They also decided to ease the controlled protection zone of 3.69 million㎡ (1,116,225 pyeong) to a restricted protection zone. When eased to a restricted protection zone, construction of buildings becomes possible after consultation with the military. The ruling party and government also classified about 34.26 million㎡ of areas with minor impact on military operations and decided to additionally entrust local governments with the obligation to consult with the military for development and other matters. Included are Gyeonggi-do’s Paju, Goyang-si, Yangju-si, Gimpo-si, Ganghwa-do, and Gangwon-do’s Cheorwon, Yeoncheon, Yanggu, and Yangyang.