[2026 Parliamentary Audit] Oh Sehoon: "Transfer authority over redevelopment projects to districts? ... It will lead to haphazard development"

"Rents and lease deposits will rise if the tax reform plan is implemented"
"Next year's budget to increase substantially... a cause of real estate market instability"

Seoul Mayor Oh Sehoon waits for the start of the 2026 National Assembly Public Administration and Security Committee audit of the Seoul Metropolitan Government at Seoul City Hall in Jung-gu, Seoul, on October 15, 2026. Photo by Kang Jinhyung

Seoul Mayor Oh Sehoon made clear his opposition to transferring from the Seoul Metropolitan Government to district offices the authority to approve redevelopment and reconstruction projects with fewer than 500 households, saying, "It will lead to haphazard development, and people will eventually regret it."

Oh made the remarks on the 15th during the Seoul Metropolitan Government audit by the National Assembly Public Administration and Security Committee, in response to a question from People Power Party lawmaker Kang Myung-gu, who asked, "Wouldn't transferring authority to district offices for residential maintenance projects with 500 households or fewer slow things down further?"

"The supply of housing will slow further," Oh said. "The city is involved only in designating areas and establishing redevelopment associations, while all approval processes are handled by district offices." He added, "We have also shortened processes that used to take years to less than four months through Shintong Planning."

Kang pointed out, "Urban planning requires a broad vision, but if district offices are given authority, they will act according to their own standards, and won't that turn the area into what is commonly called a neighborhood of one-room apartments?" In response, Oh agreed, saying, "The ability to coordinate residential maintenance projects will be weakened."

Meanwhile, Democratic Party of Korea lawmaker Lee Hae-sik said that although the Seoul Metropolitan Government should naturally handle projects spanning multiple districts, authority should be divided so that district offices can review small-scale projects involving fewer than 500 households. Oh responded by asking, "Do district offices have specialized staff to handle this?"

Oh blamed the Lee Jae-myung administration for the recent instability in housing prices.

"If the government's current tax reform plan is implemented, the resulting increase in the tax burden will eventually be passed on to tenants, with a time lag," Oh said. "It will be difficult to escape the vicious cycle in which rising monthly rents and lease deposits continue and, in turn, drive up home sale prices."

He added, "Historical statistical data show that real estate prices move in direct proportion to the amount of money in circulation. The Lee Jae-myung administration has pursued expansionary fiscal policy excessively, and next year's budget is also expected to increase substantially. This will be the biggest cause of instability in the real estate market."

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