Oh Se-hoon Expresses Regret Over Lack of Opportunity to Voice Housing Market Concerns at Cabinet Meeting

Seoul Mayor Oh Se-hoon has expressed regret over not being given the opportunity to speak in detail at a cabinet meeting.
During a briefing held at Seoul City Hall on the afternoon of July 14, Mayor Oh addressed the cabinet meeting he attended earlier that morning, stating, "I intended to directly convey the recent situation of Seoul's housing market and the desperate voices of citizens to the government. However, I was not given the opportunity to voice those concerns at today's cabinet meeting."
He emphasized, "I find this very regrettable and disappointing."
Mayor Oh noted that the President had asked for an explanation regarding the reasons for the delay in apartment supply in Seoul during the meeting. He stated, "I believe it is highly likely that (the President's) perception of the situation is not accurate," adding, "I will submit a second report so that he can be fully informed of these matters."
"A cabinet meeting should be a place for debate, so I was quite disappointed that I could only deliver a report without having the chance to speak," he said. "However, I do not want to view this as intentional exclusion. I wanted to convey (the proposal) as smoothly as possible, and it is very unfortunate that it could not be carried out."
In a 30-page proposal on real estate policy, Mayor Oh urged the government to reconsider its regulation-centered real estate policy and shift its policy stance toward expanding supply.
Mayor Oh pointed out, "Seoul's housing market is facing a 'triple rise' crisis where sale prices, jeonse (lump-sum housing lease), and monthly rent are all rising simultaneously," adding, "There has hardly been any administration in the past where sale prices, jeonse, and monthly rent have all risen at once."
He continued, "Young people I met in the field are in despair, having given up on owning a home, and ordinary citizens say they are anxious about tomorrow due to the burden of soaring housing costs," emphasizing, "We must now move away from demand-suppression policies and shift the focus of our policy toward expanding supply."
According to the Seoul Metropolitan Government, the proposal includes plans for institutional improvements in three areas: deregulation of maintenance projects, revitalization of private rental housing, and tax reform.
Regarding this, Mayor Oh emphasized, "We must speed up maintenance projects, which are the core of housing supply in Seoul. Over the past three years, the private sector has been responsible for more than 90% of housing supply in Seoul," adding, "There are over 700 maintenance projects underway, including 472 reconstruction and redevelopment sites and Moa Town projects, and we must concentrate our administrative capabilities on these."
Mayor Oh specifically pointed out that policies such as regulations on relocation cost loans are causing side effects that hinder the rapid supply of housing.
"Restricting even the relocation costs needed while building new homes through loan regulations does not align with the policy goal of expanding supply," he said. "Maintenance projects can only proceed normally if relocation cost loan regulations are reasonably improved and restrictions on the transfer of union member status are eased."
Regarding the private rental market, which is currently under government regulation, he argued for easing loan regulations for private rental business owners, stating, "Non-apartment housing such as officetels, row houses, and multi-household houses are important pillars supporting the housing of young people and ordinary citizens. Policies that are hostile toward private rental business owners, as is the case now, will inevitably limit supply."
Regarding tax reform, he expressed concern over the government's moves to reduce special deductions for long-term ownership and strengthen holding taxes.
Mayor Oh said, "With the average price of apartments in Seoul exceeding 1.3 billion won, reducing special deductions for long-term ownership will increase the burden on single-home owners who provide jeonse and monthly rentals, ultimately reducing the number of properties available on the market and the supply of rentals," adding, "The tax base system for property tax and comprehensive real estate tax also needs to be adjusted to reflect market reality."
He further pointed out, "Policies that excessively emphasize and effectively force actual residence can lead to various side effects."
He urged a policy shift, arguing that this is no different from effectively forcing citizens who cannot live in their own homes due to various circumstances, such as school districts and jobs, to do so.
Regarding the cause of delays in reconstruction and redevelopment in Seoul, Mayor Oh said, "If I were to name the biggest cause, it is that most reconstruction and redevelopment complexes were canceled or revoked during the Park Won-soon administration," adding, "Experts and citizens alike know that this is having an impact now, five or ten years later."
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.