Sehoon Oh: "President Unaware of Ministry's Lack of Cooperation... Seoul Also Preparing Forums" (Comprehensive)

"Regret Over Not Being Given the Opportunity to Speak"

"Will Submit a Second Report to the Government"

"Government is Practically Forcing Residency Requirements"

Detailed Explanations on Property Taxes and Relocation Loans

Sehoon Oh, Mayor of Seoul, stated on July 14th, "What I interpreted from the President's remarks is that even though the Seoul Metropolitan Government is making its utmost efforts, delays are occurring because of the lack of cooperation from the Financial Services Commission, which is responsible for loans, and the Ministry of Land, Infrastructure and Transport, which needs to handle the details of redevelopment and reconstruction policies. It seemed as if the President was completely unaware of these delays."

Seoul Mayor Oh Se-hoon is briefing on 'Government Recommendations for the Real Estate Policy at the Cabinet Meeting' on the 14th at the Seoul City Hall briefing room. Photo by Yonhap News.

Mayor Oh made these comments with regard to President Jaemyung Lee's request during a cabinet meeting that morning, asking Oh to "include a status report on how the reconstruction and redevelopment projects are currently progressing in Seoul, as there have been claims that the supply is severely lacking, and provide details as to why this is happening." That afternoon, Mayor Oh held a briefing at the Seoul City Hall briefing room to announce three major areas and eight specific policy tasks aimed at normalizing the Seoul real estate market, which have been submitted to the government.

He went on to say, "The report we submitted today includes this part briefly and in a nuanced manner, but I thought I should prepare a more direct and detailed explanatory material separately." He added, "I personally submitted more than ten suggestions directly to the Ministry of Land, Infrastructure and Transport over the past year, but none have been reflected. I hope the president becomes aware of this."

Additionally, Oh said, "Including today, there will be three rounds of national real estate forums, and I will make sure Seoul city officials are ready to participate immediately." He continued, "I intend to make sure there is another opportunity to verbally present the material we prepared today."

Mayor Oh also remarked, "Since I returned to lead Seoul five years ago, we have been able to nearly halve the project periods for redevelopment through the expedited integrated planning system. However, since it's only been five years, there haven't been that many projects ready to break ground." He added, "I will include in the second report a detailed account of the difficulties construction companies are facing because of rapidly rising construction costs due to factors such as the Russia-Ukraine war, increases in raw material prices, and higher labor costs, in order to make these issues fully understood."

When asked what he would like to emphasize in the second report, Oh said, "The current government is essentially requiring people to actually live in their homes. Forcing such a policy, when the freedom to change one's residence should be guaranteed, will generate many adverse side effects." He explained further, "It seems the government is considering raising various taxes, but if you consider all real estate-related taxes, including acquisition and sales, our property tax burden is by no means low compared to OECD countries."

He continued, "If the government imposes strict loan limits on relocation funds as a general principle, it could lead to significant problems." He added, "I will make sure to submit each of these detailed issues to the government so that they can be reflected in policymaking."

Regarding communication between the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government, Oh said, "The communication channels are in place, but the city's position is not being reflected. The President emphasized inter-agency cooperation and communication, but this is not happening in practice."

He continued, "With the Seoul Metropolitan Government making housing policy decisions that affect 10 million Seoul citizens, it doesn't seem meaningful to hold one or two discussion forums when the government has yet to properly consider the recommendations we've made more than ten times. Nevertheless, the city will continue to submit its proposals to the government," he reaffirmed.

Lastly, he said, "Internally, we will consider whether Seoul should also hold real estate forums directly for citizens."

Earlier, during the cabinet meeting that day, Mayor Oh had planned to deliver comments to President Lee on matters primarily related to redevelopment projects, specifically loans for relocation, transfer of association member status, and the easing of rental business regulations. However, when Oh requested to speak by asking, "May the Mayor of Seoul be allowed to say a few words?" but Prime Minister Seongsook Han did not grant him an opportunity, he instead submitted his proposals in writing.

The material submitted by the Seoul Metropolitan Government was entitled "Real Estate Market Issue Analysis and Government Proposals," and it was distributed to relevant ministries, including the Office of the President, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, and the Ministry of Strategy and Finance.

Regarding not being given a chance to speak, Oh stated, "Because a minister whose position contradicts the President's views would inevitably feel intimidated, I, as someone elected by the people to serve as Mayor of Seoul, believed it was most appropriate for me to speak. While I attended intending to fulfill my duty as the most appropriate person to represent these issues, I regret not being given the opportunity to do so."

This content was produced with the assistance of AI translation services.