Oh Se-hoon: "Reconstruction and Redevelopment Are the Master Key to Supply; Government Is the Biggest Risk"

Seoul Mayor Oh Se-hoon has strongly criticized the Lee Jae-myung administration's stance on redevelopment and reconstruction, emphasizing that accelerating private urban renewal projects is the solution to expanding housing supply in the city center.

In a post on his Facebook page today (July 20), Mayor Oh stated, "Redevelopment and reconstruction are the 'master key' to providing high-quality housing in the city center," adding, "The government must not block renewal projects with outdated ideologies and regulations."

This is interpreted as a rebuttal to remarks made by Kim Yong-beom, the Presidential Policy Chief, during a broadcast interview yesterday, where he pointed out that redevelopment and reconstruction are "not a universal key."

At the time, Kim explained regarding redevelopment and reconstruction, "They do not secure supply in the short term," and added, "While procedures can be shortened and floor area ratios can be discussed, it takes at least 3 to 5 years."

Seemingly targeting these comments, Mayor Oh emphasized, "Seoul is no longer a city with vacant land. We cannot secure new residential sites indefinitely or continue to expand outward," adding, "Ultimately, housing supply depends on how efficiently we reorganize the existing city center."

He further criticized the administration, stating, "Redevelopment and reconstruction are core means of supply and essential tasks. It is regrettable that the Lee Jae-myung administration still holds onto an outdated perspective that views renewal projects through an ideological lens and as a symbol of speculation."

Mayor Oh also expressed a critical view of the regulatory policies, such as financial and tax measures, that the Lee Jae-myung administration is pursuing for real estate stability.

"The real estate market cannot be solved with prescriptions that attempt to suppress it through a single regulation, a single loan, or a single tax. Approaches that try to manage prices without providing certainty regarding supply have already failed countless times," Oh pointed out.

Regarding the government's policy of public-led supply, he said, "While it is natural for the public sector to play a role, the idea that it should lead everything is an approach that ignores reality," noting that he has seen numerous cases where plans were delayed or collapsed during land acquisition and various administrative procedures.

Reiterating the importance of reconstruction and redevelopment projects, Mayor Oh asserted, "Private renewal projects, which are already moving forward based on resident consent, are different. Removing unnecessary regulations and accelerating them is the fastest and most efficient path to supply."

"The government's attitude of ignoring renewal projects while trapped in dogma is the biggest risk that makes the market unstable," Oh criticized. "Such shortsightedness, unable to see even an inch ahead, will instead fuel price instability by sending a crisis signal to the market that 'there will be no apartment supply in the city center.'"

"The Seoul Metropolitan Government is only interested in getting things done properly and quickly. What is needed now is not public-led measures just for show, but removing unnecessary regulations and adding momentum to private renewal projects that are already running on the ground," Mayor Oh added.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.