Seoul City Reluctant on Central Government’s 'All-out Supply' Plan

Oh Sehoon Says "No Supply in Yongsan Park"
Friction Over Development of Idle Urban Land
Diverging Views on Expanding Redevelopment and Reconstruction Projects

On August 7, 2026, at 2:00 PM, President Lee Jaemyung will preside over the second policy review meeting on real estate at the Blue House, joined by Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol, Minister of Land, Infrastructure, and Transport Kim Yoonduk, and other relevant government ministers. Key agenda items are expected to include ways to secure new supply sites and housing volumes, such as lifting greenbelt restrictions and utilizing quasi-industrial areas, as well as measures to reduce project approval procedures. However, it appears that accelerating policy implementation may not be easy, as the Seoul Metropolitan Government—responsible for a major portion of the supply—is opposed to some of the central government's supply plans.

Seoul Mayor Oh Sehoon is attentively listening to a participant's remarks during the "Public Debate for Real Estate Normalization" held at Seoul City Hall on the 6th. Photo by Yonhap News Agency

According to related ministries and officials, the upcoming policy review meeting chaired by President Lee will focus on supply strategies, with particular weight placed on the possibility of designating new sites. Previously, the government announced that it would also consider the release of quasi-industrial and greenbelt areas. Additionally, it expressed its intention to supply tens of thousands of housing units on the site of Yongsan Park.

However, the Seoul Metropolitan Government opposes these government plans. At a debate held the previous day, Seoul Mayor Oh Sehoon stated, "Lifting the greenbelt is absolutely not an option." Regarding the development of residential land within Yongsan Park, Mayor Oh used the phrase "No matter how urgent the situation, you don’t eat the seed grains," citing, "It is the Seoul mayor’s duty to preserve green space amid heatwaves caused by climate change" as his reason for opposition. The mayor insists that the 300,000-square-meter Yongsan Park site—which was returned to the city—should be preserved as it is.

Efforts by the government to speed up the development of unused urban land announced in January—such as the Yongsan International Business District, Gwacheon Racecourse & Counterintelligence Command site, and Taereung Country Club—are also bound to face friction with the Seoul Metropolitan Government. The central government has stated its intention to provide 60,000 homes on these sites. The policy review meeting is expected to discuss measures to reduce the duration of previously-approved public housing projects by more than half, but the Seoul Metropolitan Government remains hesitant, citing the need to secure the consent of residents. Mayor Oh reportedly remarked that, regarding the plan to provide 10,000 residential units in the Yongsan International Business District, "If the Yongsan-gu district opposes it, the Seoul city government cannot force the project," adding that "resident consent is essential."

The Seoul Metropolitan Government favors expanding redevelopment and reconstruction maintenance projects, yet the central government remains lukewarm. Recalling a previous meeting with Kim Yongbeom, the policy chief at the presidential office, Mayor Oh remarked, "The fact is, reconstruction projects can add 40%, and redevelopment projects 25%, to new housing volume," adding, "If the government signals a negative stance, it will send the message that ‘under this administration, new supply will be difficult to expect.’"

There are also stark differences in views regarding fiscal and financial policy. The central government intends to protect owners of a single, owner-occupied home through tax reform while increasing the tax burden on extremely high-price homes, non-owner-occupied homes, and owners of multiple properties. However, the Seoul Metropolitan Government counters that it is necessary to offer tax and financial incentives to encourage private rental businesses to participate.

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