Oh Se-hoon: "Redevelopment Regulation Relaxation and Real Estate Disruption Prevention Measures Will Be Announced Soon" (Comprehensive)

Seoul Mayor's First Press Briefing

Firm Crackdown on Market Disruption
Confirmed Willingness to Ease Real Estate Regulations... "92% Progress in Reconstruction and Redevelopment"
"Urban Regeneration Has Positive Aspects but Redevelopment Cannot Be Completely Halted"

Four-Party Talks on Ending Metropolitan Landfill Use to Start Soon
'I Seoul U' Brand to Be Maintained as Much as Possible... Draws Line on Subway Fare Increase

Seoul Mayor Oh Se-hoon is speaking at a press conference with reporters held at Seoul City Hall on the 17th, marking one month since his inauguration. / Provided by Seoul City Hall

[Asia Economy Reporters Lim Cheol-young, Kim Hye-min] Seoul Mayor Oh Se-hoon has decided to soon introduce measures to ease redevelopment regulations, which have seen no new district designations for nearly six years. He also plans to coordinate with the government to implement regulatory measures to prevent market disturbances such as rapid real estate price surges. The plan aims to strike a balance between market stability and supply by appropriately mixing deregulation and regulatory measures.

On the 17th, Mayor Oh held his first press briefing since taking office at the Seoul City Hall, stating, "I will work hard with the spirit of Seokjeon Gyeongu (石田耕牛, meaning 'plowing a rocky field')." He added, "Despite the short term of one year and three months, we have launched the 'Seoul Vision 2030 Committee' with a five-year outlook," and promised to unveil the major framework of Seoul's vision and strategy within a month.

◆ "The will to ease real estate regulations remains intact... Market-disturbing activities must be curbed" = At the event, Mayor Oh actively addressed criticisms that redevelopment and reconstruction progress has been slow. He said, "Currently, there are about 489 redevelopment and reconstruction complexes in Seoul," and explained, "It may feel delayed because prices have surged in some large complexes that attract much attention, but about 92% are proceeding as planned."

Regarding his failure to fulfill the promise to ease regulations within a week of taking office, he asked for understanding as a sign of intent, saying, "Please see it as an expression of will. That will has not faded at all, and I believe the plan is proceeding as originally intended." This implies that his direction to ease regulations remains unchanged.

He said he would soon announce measures to ease redevelopment regulations. There have been no new district designations for redevelopment since 2015. Mayor Oh mentioned that he could organize several measures to revitalize redevelopment, including abolishing the Residential Maintenance Index system included in his campaign promises, within ten days. However, he added, "The timing of the announcement will be coordinated with regulatory measures to minimize market confusion."

While reaffirming his commitment to deregulation, he also emphasized strict measures against market-disturbing activities. Since taking office, Mayor Oh has designated land transaction permission zones for redevelopment and reconstruction complexes in Yeouido, Mok-dong, Apgujeong, and Seongsu-dong, where real estate prices have risen. He said, "We are working with the Ministry of Land, Infrastructure and Transport on additional regulatory measures against activities close to market disruption," and added, "Once consultations are complete, we will demonstrate strong regulatory will and the results of discussions regarding abnormal transactions and rapid price increases."

Regarding urban regeneration, a key project of former Mayor Park Won-soon, Mayor Oh said, "I have never thought of not doing it uniformly," but added, "The reason for scaling it down is that redevelopment and reconstruction policies have been excessively suppressed so far."

He stated, "Urban regeneration has its merits. Is redevelopment and reconstruction, which involves tearing everything down and rebuilding, always the best approach?" He continued, "If a village community itself functions well and is a much more desirable environment for raising children, it is rather appropriate to support and preserve it."

However, he noted, "Experts say that the current housing market disaster occurred because redevelopment and reconstruction were too antagonized," and expressed his view that "even if there is initial confusion, it is right to establish and proceed with a relationship where urban regeneration and redevelopment/reconstruction coexist."

Seoul Mayor Oh Se-hoon is speaking at a press conference with reporters held at Seoul City Hall on the 17th, marking one month since his inauguration. / Provided by Seoul City Hall

◆ "Respecting administrative continuity, maintaining the 'I·SEOUL·U' brand... The Gwanghwamun Square decision is not unexpected" = Mayor Oh conveyed his intention to continue using Seoul's brand 'I·SEOUL·U.' Although there were speculations about replacing the brand, he explained that he would adhere to the basic principle of respecting administrative continuity following the late former Mayor Park Won-soon.

Mayor Oh acknowledged, "It is true that there have been criticisms that the current brand is weak," but said, "Even if it is insufficient and not ideal, it must be respected from the perspective of administrative continuity. As a successor, I believe it is proper to try to continue using it as much as possible." However, he added that excessive use of the brand should be restrained, citing the installation of large brand structures in parks and unfamiliar places used by citizens rather than tourists.

Regarding the decision to continue construction at Gwanghwamun Square, he explained, "It is a representative case that shows my principle and is not an unexpected decision at all," adding, "It is an urgent issue currently under construction, and I have already received reports from the relevant department." He also mentioned that free kindergarten meals fall under the same context, saying, "It was a principle I announced when declaring my candidacy," and added, "It was neither an unexpected decision nor a matter requiring separate political judgment."

Meanwhile, on the possibility of subway fare increases, he said, "I acknowledge the need for an increase, but even from a common-sense perspective, this is not a good time to raise fares," and added, "Cost reduction and deficit reduction through management rationalization must be prerequisites."

Regarding concerns about a garbage crisis surrounding the end of the use of the metropolitan landfill site in 2025, he stated, "Four-party consultations involving Seoul City, the Ministry of Environment, Incheon City, and Gyeonggi Province will begin soon," and expressed confidence, saying, "If the existing agreement is respected, I believe there will be no problems at all."