Seoul Mayor Oh Se-hoon visited the urban renewal project sites in Seogye-dong and Cheongpa-dong, Yongsan-gu, this morning (the 11th) and emphasized the housing supply effects of redevelopment and reconstruction projects.

This is interpreted as a direct rebuttal to President Lee Jae-myung, who cast doubt on the housing supply effects of urban renewal projects during last month's "National Public Debate on Real Estate Policy."

Seogye-dong and Cheongpa-dong in Yongsan-gu are representative low-rise residential areas formed when residents who moved to Seoul in search of jobs during the industrialization and urbanization process of the 1960s settled near Seoul Station.

According to the Seoul Metropolitan Government, 7 private urban renewal projects, including Rapid Integrated Planning redevelopment and Moatowns, are being promoted in this area.

Except for District 3 of Cheongpa, where the number of households has not yet been finalized, looking at the other 6 areas, the number of houses will increase by about 26.5% from 6,393 households to 8,088 households.

This means a net increase of 1,695 homes, even after accounting for all existing units as demolished volume.

The city will also expand roads, parks, public libraries, senior welfare facilities, and youth shelters in the area.

Mayor Oh walked through narrow alleys where fire engines have difficulty entering and steep slopes to inspect the living environment.

He then held a meeting with residents, including the heads of the Cheongpa 2 redevelopment association, at the association's office.

Expressing gratitude for the city's relocation expense loan support, the residents urged Mayor Oh to ensure that the ongoing renewal projects proceed without a hitch.

At the meeting, Mayor Oh said, "The president is misinformed and says that housing volume does not increase through redevelopment and reconstruction, but if you come here, you can clearly see that is a mistaken remark. Nearly 1,700 new homes are net additions; in other words, houses that did not exist are being created here in the Cheongpa-dong and Seogye-dong areas."

He continued, "There are many misunderstandings about urban renewal projects. It is true that there are preconceptions and prejudices such as, 'Why should the government help when homeowners get bigger and better houses?' I think this also influences the president's perception and is implicitly reflected in the Ministry of Land, Infrastructure and Transport's stance."

Mayor Oh emphasized, "Urban renewal projects are by no means targets for hostility. Seoul, which lacks idle land, must secure a net increase in volume through redevelopment and reconstruction to establish a virtuous cycle of housing supply. Since about 90% of supply in Seoul is practically achieved through this, there is no need to think stingily about reconstruction and redevelopment."

The Seoul Metropolitan Government states that the net increase effect of households from urban renewal projects is also confirmed in other areas.

The city stated that for 59 urban renewal projects completed in the Seoul area over the past 3 years, the number of homes increased by about 36.4%, or 20,000 units, compared to before the projects.

Redevelopment saw a net increase of 27.4%, or 7,000 units, while reconstruction saw a 44.2% increase, or 13,000 units.

A total of 310,000 homes will be constructed through 253 urban renewal projects that the Seoul Metropolitan Government aims to break ground on by 2031, and the city analyzed that even assuming all existing households are demolished, about 39.2%, or 87,000 units, will be net additions.

The city plans to secure 48,000 of the 310,000 homes as public rental housing to expand the foundation for housing stability for young people, newlyweds, and homeless citizens.

The plan is to extend the supply effects of urban renewal to general sales and the expansion of rental housing.

In addition, the city plans to monitor and manage the timing of relocation and the local jeonse and monthly rent markets for each project site so that the relocation of residents due to urban renewal projects is not concentrated in a specific period.

Regarding concerns that relocation volume generated by urban renewal projects could stimulate the local jeonse and monthly rent market, Mayor Oh dismissed them, saying, "There is no need to blow side effects out of proportion."

After the meeting, Mayor Oh explained to reporters, "Seoul's plan is to break ground on 85,000 households by 2028, and the resulting annual relocation demand is just over 20,000 households. There are management plans to sufficiently handle that level of generation."

He added, "The government overlooks this, and there is no need to take a hostile stance toward urban renewal projects based on exaggerated interpretations or premature concerns. If we refuse to carry out urban renewal projects out of fear of side effects, 90% of Seoul's new housing supply routes will be cut off, resulting in a situation where the cart is put before the horse."

On this day, Mayor Oh also made his opposition clear to the plan to supply housing in Yongsan Park.

Mayor Oh emphasized, "If we use the green space secured with such difficulty as if eating our seed corn, future generations will hold a deep resentment. For a mega-city with a population of 10 million, securing sufficient green space is essential to improving the quality of life."

He also pointed out, "In the phase of climate change, the heatwave patterns even differ between areas with secured green space and those without. Seoul is making massive investments to secure shaded paths and wind corridors, but the notion of using hard-earned green space for housing construction is unlikely to gain public consensus."

He conveyed, "A special act was created to preserve Yongsan Park and make it an urban forest as a principle of urban planning, regardless of ruling and opposition parties or conservatives and progressives. I want to emphasize once again my hope that this point will be respected in the current government's measures."

(Photo: Yonhap News)