Micron investment 2,500billion dollars·Market jolted by Gwangju land transaction permit zone designation
Micron increased its investment in U.S. semiconductor plants to 2,500billion dollars, while the Ministry of Land, Infrastructure and Transport designated the area near the Gwangju military airport site as a 2-year land transaction permit zone. In South Korea, materials, parts and equipment stocks rose across the board, while nearby housing markets, including Yeongtong in Suwon, surged in the short term.
Micron increased its investment in U.S. semiconductor plants to 2,500billion dollars. News of the expanded investment was reported on 7month 9day.
The Ministry of Land, Infrastructure and Transport designated semiconductor cluster areas, including the area near the Gwangju military airport site, as a 2-year land transaction permit zone. The designation takes effect on 7month 14day.
On South Korea’s stock market, stocks related to materials, parts and equipment rose together. News of the sharp rise in related stocks was confirmed in the market on 7month 10day.
Home prices in the Yeongtong area of Suwon rose rapidly under the influence of semiconductor cluster development. On a weekly basis over the same period, Yeongtong 1.19% rose, while Giheung and Guri, which are regulated areas, also saw their gains widen.
The announcement designating a land transaction permit zone in Gwangju explicitly states that some nearby land is included among the areas subject to designation. The date on which the administrative effect takes place is, as stated above, 7 month 14 day.
Micron’s announcement of expanded investment and the government’s location regulations each simultaneously triggered supply-chain investment and changes in local land and housing markets. The market response appeared immediately in stock prices and real estate indicators.
Additional corporate disclosures, detailed government administrative guidelines, and regional transaction trends are expected to follow. It is necessary to check the relevant disclosures and announcements from local governments.
The contents of this report are facts compiled from announcements by the respective companies and the government. No separate estimates or forecasts have been included.