Seoul Mayor Oh Se-hoon: Yongsan Park Development Violates Special Act, Housing Supply Regulations Must Be Eased

Seoul Mayor Oh Se-hoon has once again voiced opposition to the current administration's plan to supply housing on a portion of the Yongsan Park site.

He also stressed that expanding housing supply is key to resolving rising home prices in the capital area, urging the government to help accelerate supply by easing restrictions on the transfer of cooperative member status.

Mayor Oh made the remarks during the National Assembly Public Administration and Security Committee's parliamentary audit of the Seoul Metropolitan Government held today (October 15).

People Power Party lawmaker Joo Ho-young questioned Mayor Oh on plans to preserve Yongsan Park, as well as utilization plans and the progress of the Tancheon Water Reclamation Center site, which has been floated as an alternative housing supply site.

In response, Mayor Oh said, "The government's plan to develop apartments on the main Yongsan Park site, particularly the officer housing or military apartment sites, is a measure that directly violates the Special Act on Yongsan Park." He added, "According to a public opinion survey conducted by the Seoul Metropolitan Government targeting Seoul citizens, nearly half of the citizens oppose the development of Yongsan Park."

"I plan to emphasize this to the incoming Minister of Land, Infrastructure and Transport before long," he added.

Mayor Oh explained, "Even if Yongsan Park is utilized, there are various obstacles that make it impossible to even begin construction during this administration," noting that "because the soil is contaminated, it will take at least 3 to 4 years, or 6 to 7 years, to purify it."

"Since the Tancheon site plan was established with a 10-year horizon, we determined that whether we utilize the Tancheon site or the sewage treatment plant, apartments can be supplied around the same time as utilizing Yongsan Park," he stated, adding, "I plan to meet with the new Minister of Land, Infrastructure and Transport soon to start discussions on this matter as well."

Regarding the rise in home prices in the capital area, he emphasized the importance of public trust in housing supply.

"I think the key is whether Seoul citizens can have predictability and confidence in the housing supply," Mayor Oh said, asking, "Isn't speculative demand being generated because Seoul citizens lack confidence in the supply, prompting them to buy homes before prices go up?"

"I believe this is the primary cause of rising home prices," he added.

Regarding the recent upward trend in apartment prices in the outskirts of Seoul, he argued it is closely related to soaring Jeonse (lump-sum housing lease) and monthly rent prices.

"Jeonse and monthly rent prices are currently rising steeply due to the current administration's policies that emphasize actual residency," he pointed out, noting, "To make matters worse, there is a shortage of Jeonse units themselves."

"As a result, a phenomenon is occurring where people are being driven toward buying homes," he analyzed.

Mayor Oh also agreed with People Power Party lawmaker Seo Myung-ok's point that the cancellation of Newtown redevelopment zones during former Mayor Park Won-soon's tenure has impacted the current housing supply shortage.

"Because units that were supposed to be supplied sequentially by the tens of thousands every year vanished all at once back then, it inevitably creates a structure that impacts 5, 10, or even 15 years down the road," he explained.

He emphasized, "Since Seoul is not a city with much available land, the three musketeers of redevelopment, reconstruction, and Moa Town are the sources of most new housing supply."

As measures to accelerate housing supply, Mayor Oh proposed two suggestions to the government: easing restrictions on the transfer of cooperative member status and providing relocation funds.

"If restrictions on the transfer of cooperative member status are temporarily lifted for just three years, sources of conflict within cooperatives will decrease significantly, accelerating housing supply," he said. "This is how the government can help Seoul."

"I believe that helping ensure a smooth supply of relocation funds will also help accelerate the process further," he added.

He also urged expanded tax and financial support for private rental housing providers.

Seoul Mayor Oh stressed, "Private rental housing providers supplying rental homes helps stabilize the Jeonse and monthly rent markets," adding, "In a situation where Jeonse and monthly rent prices are rising so steeply, tax and financial benefits for private rental housing providers must be drastically increased."

"Creating a policy environment where they can jump into various rental housing markets, including youth rental housing and youth relief housing, is what the government should be doing, yet its efforts in this area are severely lacking," he criticized.

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