Despite Pleas Over Real Estate 'Hell'... Tensions Continue Between Government and Seoul City

Seoul's Redevelopment Projects Require Central Government Support
"Communication with the Government Is Lacking," City Officials Express Regret
City Officials Attend Forum as Observers, Make Statements When Possible

Seoul Mayor Oh Se-hoon was not invited to the real estate forum to be presided over by President Lee Jae-myung on July 23. During the three days of ministry-level forums held since the 14th, representatives from the Seoul Metropolitan Government participated only as observers, not as presenters or panelists.

At the forum held on the 15th, Baek Doo-jin, Head of Real Estate Finance Analysis at the Seoul Metropolitan Government, remarked during the open discussion session, "We have made several proposals regarding relocation loans to the Ministry of Land, Infrastructure and Transport, but we have only received indirect responses. I would like to ask if we can get a more direct answer now."

The Seoul Metropolitan Government plans to accelerate redevelopment zone projects and break ground on 310,000 new housing units by 2031. However, city officials acknowledge that there are limitations to what can be accomplished with only municipal-level financial support or administrative streamlining. This is because key institutional aspects such as loans, taxation, and the transfer of cooperative member status remain under the control of the central government. One city official stated, "We have continuously proposed real estate policies to the Ministry of Land, Infrastructure and Transport through irregular communication channels, but there has been no response."

Seoul Mayor Oh Sehoon attended the Cabinet meeting held on the 14th at the Blue House, presided over by President Lee Jae-myung. Photo by Yonhap News

The ongoing tension between the central government and the Seoul Metropolitan Government was also evident at the Cabinet meeting on the 14th. When Mayor Oh requested to speak on real estate policy, Prime Minister Han Sung-sook intervened, saying, "We will take your opinions in writing." In response, Mayor Oh distributed the prepared report to the Blue House, the Ministry of Land, Infrastructure and Transport, and other relevant agencies, stating, "Since I may not have the opportunity to speak, I will submit my report instead."

Just before the meeting switched to a closed session, President Lee invited Mayor Oh to give a greeting. When Mayor Oh attempted to elaborate on housing administration issues, President Lee stopped him again by saying, "Save that for later."

Mayor Oh held a briefing later that afternoon to express his regret regarding the events at the Cabinet meeting. He stated, "The government seems utterly unaware that, despite the city’s efforts, projects are being delayed by insufficient cooperation from the Financial Services Commission or the Ministry of Land, Infrastructure and Transport."

He followed up by releasing a video titled "Mayor Oh Se-hoon’s Untold Story from the Cabinet Meeting: The Lee Jae-myung Administration’s Real Estate Hell – An Analytical Report" on the official website and YouTube’s Live Seoul channel. In the video, Mayor Oh criticized the government for a "triple surge" in Seoul apartment prices—sales, deposits for rent (jeonse), and monthly rents—all rising simultaneously in the year following the launch of the current administration.

Mayor Oh argued that, despite presenting six policy measures, the government has only focused on curbing demand—such as by tightening loan limits and expanding regulated areas—while confining supply efforts to the public sector. He emphasized that the resulting burdens are being borne by ordinary citizens, including young people, newlyweds, and owner-occupiers from the middle class.

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