▲ Seoul Mayor Oh Se-hoon listens to a participant's remarks during a citizens' grand debate on real estate normalization held at Seoul City Hall on the 6th. (Photo: Yonhap News)
Seoul Mayor Oh Se-hoon stated today (August 6) regarding the government's real estate tax reform proposal, "Watching holding taxes and capital gains taxes rise sharply, the expression that it feels like a form of state violence really resonated with me."
During his closing remarks at the Seoul City Grand Debate for Real Estate Normalization, presided over at Seoul City Hall today, Mayor Oh said, "Listening to the remarks of citizens and experts today, I could not help but feel heavy-hearted," and made these remarks.
He also added, "I empathized with the remark that rather than increasing the intensity of regulations, we should analyze the causes and come up with proper solutions, but just applying regulations feels like being experimented on."
Today's debate lasted for about 100 minutes starting from 10 a.m.
The debate was reminiscent of a venue criticizing the government's real estate policies.
Concerns were mainly raised that the government's tax reform proposal could lead to instability in the lease market and a contraction in housing supply, alongside opinions calling for eased regulations on private rental housing providers, who act as housing suppliers.
In his opening remarks, Mayor Oh also repeatedly criticized the government's tax reform proposal, asking, "Aren't they failing to control house prices while only driving up jeonse and wolse (lease) prices?"
During today's discussion, a question was also raised asking whether the government and the Seoul Metropolitan Government were out of sync on real estate policies.
In response, Mayor Oh pointed out, "The lack of coordination within the government is the bigger problem."
He pointed out, "If the government has the will to solve the jeonse and wolse issues, it would naturally provide incentives to private rental housing suppliers to induce more supply through greater investment. However, because finance and taxation are being suppressed, the market has no choice but to be confused as to whether they are actually being asked to supply housing."
Regarding the recent proposal raised by some circles to supply housing on the site of the Yongsan Park Children's Garden, he made his stance clear by stating, "I can never agree to it."
As for supply plans utilizing the lifting of the greenbelt or semi-industrial areas, he avoided further comment, saying, "I made my stance clear yesterday."
Following a luncheon meeting yesterday with Presidential Chief of Policy Kim Yong-beom, Mayor Oh mentioned that the government had noted the necessity of expanding housing supply using Seoul's semi-industrial areas, stating, "This is an area Seoul is already implementing, and I suggested that supply could be further expanded if the Ministry of Land, Infrastructure and Transport guidelines are revised."
In addition, regarding the plan to supply housing through lifting greenbelt restrictions, which the government is reportedly reviewing, it was reported that he expressed the stance that the Seoul metropolitan government cannot cooperate.
Today's debate in Seoul drew keen attention as it was held right after President Lee Jae-myung shared the government's policy direction through a national grand debate on real estate policies on July 23, and the government announced its real estate tax reform proposal on the 3rd.
The Democratic Party of Korea's Seoul Metropolitan Chapter also held a meeting at the National Assembly today to respond to real estate policies, where opinions emerged emphasizing the need for a thorough analysis and a cautious approach regarding the impact of the government's real estate policies, including the tax reform proposal, on single-home owners and the jeonse and wolse markets.
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