Oh Sehoon Criticizes President Lee's Concerns Over Redevelopment and Reconstruction: "Delaying Due to Side Effects Is a Misguided Notion"

Position Stated After People Power Party Forum on the 19th
Oh Sehoon on President's Concerns: "Out of Touch with Reality"
On Yongsan Park: "No Room for Compromise"

President Lee Jaemyung recently expressed concerns that easing redevelopment and reconstruction regulations could fuel a surge in housing prices. In response, Seoul Mayor Oh Sehoon criticized this view on the 19th, saying, "Delaying redevelopment and reconstruction because of potential side effects is a misguided idea that puts the cart before the horse."

Seoul Mayor Oh Se-hoon is speaking at the discussion titled 'Blocked Supply, Punitive Taxation: What Is the Problem with the August 13 Real Estate Measures' hosted by the People Power Party Seoul Metropolitan Party and Seoul City at the National Assembly Members' Office Building on the 19th. Photo by Yonhap News.

After a forum on the August 13 real estate measures hosted by the Seoul Metropolitan branch of the People Power Party at the National Assembly that morning, Mayor Oh told reporters, "If we shy away from redevelopment and reconstruction out of fear of inevitable side effects, there will, in effect, be no supply solutions left for Seoul."

The previous day, President Lee had made it clear to Mayor Oh that easing regulations, which could drive up housing prices, should be approached with caution. His argument was that drastically relaxing redevelopment and reconstruction regulations could trigger a sharp increase in housing prices, so both the expansion of supply and the stability of the market must be considered as dual objectives.

Commenting on this, Mayor Oh said, "Seoul City is equally committed to stabilizing real estate prices and sincerely dedicated to expanding housing supply. Even if we gain discretionary power—such as easing restrictions on the transfer of membership status for redevelopment unions, or relaxing regulations on floor area ratio and the proportion of rental housing—would we ever pursue policies that go against increasing supply?"

He further pointed out, "The President's remarks stem from concerns that raising the floor area ratio for redevelopment projects boosts the value of real estate and stokes price increases. But would providing modest incentives to improve project profitability really send real estate prices skyward? That concern is out of touch with current reality."

He continued, "It is the role of Seoul City to finely calibrate the supply in ways that minimize the impact on prices and rent, both in and around redevelopment areas. If Seoul crafts and implements effective, precisely targeted measures, that should be sufficient. However, if the President voices concern, the market will perceive a message that the city and the government are out of step for the time being, making supply difficult—and this, paradoxically, could further stimulate prices."

Regarding his planned meeting the following day with Minister of Land, Infrastructure and Transport Kim Yoondeok, Mayor Oh said, "Yongsan Park is a cherished space for Seoul citizens, secured over generations as a place to live and enjoy leisure. There is now a social consensus that the Yongsan land, at the very least, should be preserved as green space for the future of Seoul residents, and that’s why the Special Act on Yongsan Park was enacted." He added, "I will strongly urge the minister to uphold the original intent of the law. There is absolutely no room for compromise."

Meanwhile, responding to Blue House Chief Spokesperson Kang Yoojeong's statement the previous day that she had 'heard nothing regarding Yongsan Park,' Mayor Oh remarked, "In the Cabinet meeting, I told the President that I had read a news article about plans to turn the Yongsan Children's Garden into an apartment complex. How could Yongsan not have come up? Hearing the Blue House's response left me baffled."

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