[Asia Economy Reporter Oh Sang-do] Park Won-soon, Mayor of Seoul, repeatedly emphasized that the cause of the soaring apartment prices in Seoul is not a supply shortage but speculation, and that the real estate issue should be resolved through a 'National Shared Fund.'
At a New Year's meeting with the press corps held at Seoul City Hall on the 20th, Mayor Park said, "There is a national consensus that speculative profits and development gains from real estate development should be recovered."
In response to a question about the criticism that "Seoul City's suppression of redevelopment and reconstruction is causing housing prices to skyrocket," he replied, "Regarding the supply issue, (contrary to some media claims) Seoul City's position is correct." He added, "(Seoul City's data) has been accumulated over a long time and was created focusing on policy measures, so I don't think it is wrong," and explained, "Seoul City has not been negligent in supply and has consistently pursued policies to increase the volume, so the current problem does not stem from supply."
Mayor Park emphasized that the development gain recovery system, which resolves inequality and unfairness, is the fundamental solution to the speculation problem. He proposed, "Seoul City will start, even on a small scale, a plan to recover real estate speculation and development gains into a National Shared Fund."
When asked about the concept of the shared fund, he explained, "The core is building or securing public housing, purchasing commercial buildings or properties in the city center to prevent gentrification, or continuously buying land where factories can be built and supplying factory sites to companies at low prices."
However, he added, "Seoul City does not have the authority to raise property taxes for this, so this is something the central government must resolve institutionally," and said, "At the Seoul City level, we are thinking of starting with various development charges and social public contributions during reconstruction as basic capital."
The alternative for the 'Sewoon Redevelopment Promotion District' also became a topic at the meeting. Mayor Park said, "There are various considerations, and we are in sufficient discussions with stakeholders and Jung-gu Office," adding, "I think we can announce something if we wait a little longer." He also expressed his usual conviction, saying, "I don't think it is about wiping out and rebuilding the entire city like past New Towns or redevelopment," and "Since the city has history and an ecosystem, we should not approach it in that way."
Regarding the labor-management conflict at Seoul Transportation Corporation, which even raised talks of service suspension, Mayor Park said, "It is actually the responsibility of both labor and management." He added, "Seoul City can intervene, but minimizing intervention is always important," and said, "I believe labor and management will wisely come together and resolve it well."
Regarding the Gwanghwamun Plaza restructuring project, he said, "After many discussions with civic groups, I thought, 'It would have been a big problem if it had just proceeded,' and 'It was good to have an opportunity to review it,'" adding, "We have realized many things, and a much better plan will surely come out."
Mayor Park drew a line on political questions related to the general and presidential elections.
When asked about the so-called 'Park Won-soon faction,' including former Seoul City Administrative Deputy Mayor Kang Tae-woong and former Political Deputy Mayor Kim Won-i, running in the general election and support plans for them, he responded with a laugh, "Isn't it said that when a lioness gives birth, she drops the cubs off a cliff and lets them crawl up on their own?"
When asked about his low approval rating, he said, "Since many people worry like that, it will go well."
To the question, "When will politician Park Won-soon start his 'My Way'?" he laughed and replied, "Then, was it not 'My Way' until now?" He continued, "Seoul City has played the role of a democratic government during the nine years of the Lee Myung-bak and Park Geun-hye administrations, preparing and readying the current democratic government," and introduced, "Many policies related to human rights, democracy, communication with the people, cooperation, and innovation that the current ruling party holds have been led and prepared by Seoul City." He also said, "Isn't there a general consensus on how our society can become an integrated community?" and added, "In that sense, 'My Way' is continuing on the path we have walked so far, keeping the original intention."
Meanwhile, the toast proposed by Mayor Park to the reporters attending the meeting that day was 'Bi·Haeng·Gi' (Vision, Action, Opportunity). It means 'If you have a vision and take action, opportunities will surely come.'
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