DONGYANG EXPRESS CORP. and CHUNIL EXPRESS CO., LTD. rally on hopes for mixed-use development at Seoul Express Bus Terminal [Stocks NOW]

[Financial News] Hopes for mixed-use development at Seoul Express Bus Terminal are lifting shares of DONGYANG EXPRESS CORP. and CHUNIL EXPRESS CO., LTD. With the KOSPI on the rise, expectations that terminal development could prompt a reassessment of asset values appear to be driving up related stocks. According to the Korea Exchange, as of 9:31 a.m. on the 14th, DONGYANG EXPRESS CORP. was trading at 38,100 won, up 3,750 won (10.92%) from the previous trading day. CHUNIL EXPRESS CO., LTD. was also up 13,900 won (8.05%) at 186,500 won. The transport and warehousing sector index on the main board rose 3.78% that day, ranking among the top sectoral gainers.
The rally is believed to reflect renewed attention to hopes for mixed-use development at Seoul Express Bus Terminal. The project to develop the terminal site includes modernizing the aging terminal and building a mixed-use complex. Expectations that the asset values of companies with stakes in the site could be reassessed are being reflected in their share prices.
CHUNIL EXPRESS CO., LTD. is the second-largest shareholder in Seoul Express Bus Terminal, with a 16.67% stake, while DONGYANG EXPRESS CORP. holds 0.17%.
DONGYANG EXPRESS CORP. and CHUNIL EXPRESS CO., LTD. operate express bus transportation businesses and have attracted market attention as related stocks whenever development plans for Seoul Express Bus Terminal have come into focus. Their shares also surged late last year after news emerged that mixed-use development of the terminal was moving forward.
However, whether hopes for the development will translate into an actual increase in corporate value will depend on how the project progresses. The share-price outlook is expected to be influenced by whether the development plan takes concrete shape, the economic value of each company’s stake, and factors that could arise as the project moves forward.
[email protected] Kang Jung-mo Reporter