Oh Se-hoon: "Regarding the Daejang-dong project, I looked into it because Lee Jae-myung told me to learn from it... It's a case you should never learn from."

[Asia Economy Reporter Oh Ju-yeon] Seoul Mayor Oh Se-hoon criticized the 'Daejang-dong Development Project' as "a case that other local governments should never learn from."

[Image source=Yonhap News]

On the 19th, Mayor Oh said at the National Assembly's Public Administration and Security Committee hearing, "Gyeonggi Province Governor Lee Jae-myung publicly said that other local governments should learn from this, so I looked into it," expressing this view.

When asked by Lee Young, a member of the People Power Party, "What do you think about the Daejang-dong incident?" Mayor Oh responded, "If each local government undertakes such a project, it will shake the foundations," downplaying the Daejang-dong Development Project, which Governor Lee had emphasized as a 'meaningful project.'

On that day, Mayor Oh criticized in detail the Daejang-dong development being conducted as a public-private partnership and the shareholding structure of Seongnam-e Deul, a special purpose company (SPC) established by Seongnam Urban Development Corporation with '50%+1 share' investment.

Mayor Oh said, "(The Daejang-dong project) proceeded with private participation starting from the point of making money," adding, "It is not a genuine public-private partnership project. For Seoul City, it is an unimaginable and unprecedented matter."

He also pointed out, "The monopoly development of the Daejang-dong project arises precisely from the '50%+1 share' structure," and criticized, "The reason for entrusting the Urban Development Corporation is based on the premise that even if they purchase cheaply and maximize profits, those profits should be recovered publicly. However, in both the Daejang-dong and Baekhyeon-dong projects, the rental housing business was minimized."