Why was the Line of Demarcation established near the 38th Parallel? (4 points) The 38th Parallel divided Korea into two equal halves. The 38th Parallel was close to the front line where the two armies reached a stalemate. The 38th Parallel was the farthest location that the North Korean army had advanced into South Korean territory. The 38th Parallel was an arbitrary decision made between North and South Korean leaders.