Oh Se-hoon, Kim Yong-beom Hold Luncheon Meeting... Discussed Real Estate Without Clear Agreement

Seoul Mayor Oh Se-hoon and Cheong Wa Dae Chief of Policy Kim Yong-beom held a luncheon meeting today (the 5th) and discussed housing supply measures.

The two held a private one-on-one meeting combined with lunch at a restaurant in Seoul today, exchanging views on the government's real estate policies and housing supply issues.

Today's luncheon meeting was reportedly arranged at the request of Chief Kim's side.

Mayor Oh first expressed deep concern over the government's recent real estate measures and reportedly urged a policy shift to prevent anticipated side effects.

In addition, he conveyed his intent that close cooperation with Seoul should precede the central government's formulation and implementation of real estate policies moving ahead.

Chief Kim was reported to have mentioned the necessity of expanding housing supply using semi-industrial areas in Seoul, asking for the city government's cooperation.

In response, Mayor Oh stated that the Seoul Metropolitan Government is already implementing policies to expand housing supply utilizing semi-industrial areas, suggesting that further housing supply expansion through additional deregulation is necessary.

Semi-industrial areas, where industrial and residential functions are mixed, have faced limitations in advancing urban maintenance projects due to floor area ratio restrictions on apartment complexes and heavy financial burdens on union members.

In response, following the announcement of the Southwestern Seoul Great Transformation in 2024, the Seoul Metropolitan Government improved regulations to allow floor area ratios of up to 400%—up from the previous 250%—for reconstruction, redevelopment, and other maintenance projects in semi-industrial areas where residential use has progressed.

Going a step further today, Mayor Oh noted that housing supply conditions could be improved by revising the Ministry of Land, Infrastructure and Transport guidelines regarding the mandatory securement ratio of industrial facilities within semi-industrial areas, and requested the revision of those guidelines.

Currently, the development process for semi-industrial areas entails an obligation to secure up to 50% for industrial facilities depending on the factory ratio; the Seoul Metropolitan Government explained that lowering this to the 30–50% range would increase housing supply capacity.

Regarding the real estate tax system revision plan announced by the government on the 3rd, Mayor Oh conveyed public concerns that it is difficult to stabilize housing prices by raising taxes and that it would only intensify the hardship of the middle class and ordinary citizens living in jeonse and monthly rental homes.

In addition, he reportedly made it clear that the Seoul Metropolitan Government cannot cooperate on housing supply plans utilizing the lifting of the greenbelt, which the government is reportedly reviewing.

President Lee Jae-myung presided over a meeting to inspect the real estate and stock markets lasting about seven and a half hours at Cheong Wa Dae right after returning home on the 3rd from his tour of the United States and South America.

At the meeting, President Lee instructed officials to secure the maximum possible supply volume so that a large number of houses can be supplied as quickly as possible, while also finding ways to realize swift supply through available administrative measures, as well as financial, fiscal, and regulatory relief.

In response, the government is reportedly putting the finishing touches on a final plan to announce housing supply schemes for the Seoul metropolitan area soon.

Previously, Chief Kim also mentioned housing supply plans during an appearance on KBS Sunday Diagnosis on the 19th, saying, It is not just an issue for Seoul, and collaborating with the central government will yield much greater results, so I have arranged a separate meeting with the Seoul Mayor (Oh Se-hoon).

(Photo courtesy of Cheong Wa Dae Press Corps, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.