Seoul Mayor Oh Se-hoon Urges Reconsideration of Tax Reform for Housing Supply Plan to Take Effect

▲ Seoul Mayor Oh Se-hoon

Seoul Mayor Oh Se-hoon stated that it is regrettable that only some of the requested regulatory improvements for redevelopment projects were reflected in the government's newly announced housing supply measures, asserting that a reexamination of existing real estate policies, including the government's tax reform plan, is necessary.

In a post shared on his social media, Mayor Oh said, "I consider it fortunate that some of the measures consistently requested by the Seoul Metropolitan Government to ensure the smooth promotion of redevelopment and reconstruction have been reflected in this package," adding, "Seoul will also concentrate all administrative capabilities to ensure that the urban maintenance projects and housing supply plans currently underway are executed more swiftly and without disruption."

However, he pointed out that "core issues demanded by the field—such as easing restrictions on the transfer of cooperative member status, relaxing floor area ratio regulations for private urban maintenance projects, and easing the required ratio for long-term rental housing in redevelopment—were not reflected."

He evaluated that while "this step may provide some breathing room to urban maintenance project sites, the difficulties on the ground cannot be completely resolved."

"For the housing supply to gain momentum, regulatory easing must not remain partial or symbolic," he emphasized, adding, "Bold regulatory improvements that can substantially enhance project feasibility and shorten project periods must follow. I expect that the remaining urban maintenance project regulation proposals suggested by Seoul will also be promptly accepted."

Mayor Oh noted, "Above all, the most important point is that for today's (the 13th) announced measures to take proper effect in the market, a forward-looking reexamination of the government's overall real estate policies, including the tax reform plan announced on August 3, is necessary."

"In particular, a situation where policies excessively obsessed with 'actual residence' practically restrict citizens' freedom of relocation must no longer be allowed to continue," he stated, adding, "Since various circumstances exist in reality, it is inherently difficult to individually regulate and judge exceptions for actual residence. Patchwork prescriptions that add exception clauses every time a problem arises will only amplify market confusion."

He also stated, "Completely reexamining the 'actual residence obsession policy' is the first step toward resolving the ongoing instability in the lease market and the turmoil over jeonse and monthly rent," urging that "taking this government measure as an opportunity, the center of gravity of policy should shift more clearly from 'taxes and actual residence' to 'sufficient and continuous expansion of supply.'"

Regarding the inclusion of greenbelt lifting in the government's measures, Mayor Oh reaffirmed his opposition, stating, "Lifting the greenbelt falls under the government's authority, but my view that damaging green areas should be a last resort remains unchanged."

He further elaborated, "Even if only the urban maintenance projects currently planned by Seoul proceed normally, 310,000 housing units can be supplied by 2031. Given that effective methods for housing supply are right before our eyes, we must exercise caution regarding an approach that damages precious green spaces that should be passed on to future generations."

Apart from the content of the measures, Mayor Oh also pointed out the fact that the government did not consult with the Seoul Metropolitan Government prior to announcing the plan.

"I express deep regret that sufficient prior consultation with Seoul was not conducted in the process of formulating and announcing measures that have a profound impact on citizens' lives and the housing market," Mayor Oh said. "It is undesirable for Seoul, which actually executes a significant portion of housing supply and maintenance projects on the ground, to be effectively excluded from the policy-making process and unilaterally notified of the results."

(Photo: Joint Press Corps, Yonhap News)

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