Oh Sehoon: "Housing Prices Rise When Money Supply Increases... Not the Time for Additional Land Transaction Permits"

Oh Sehoon Voices Concerns Over Lee Jaemyung Administration's Supplementary Budget
"Worries About Whether Real Estate Prices Can Be Controlled After Supplementary Budget"
Dismisses Idea of Expanding Land Transaction Permit Zones

Seoul Mayor Oh Sehoon offered pointed criticism of the Lee Jaemyung administration's real estate loan regulation policies and the execution of the supplementary budget, stating, "It seems clear that the new administration is determined to stabilize housing prices, but housing prices are directly proportional to the supply of money."

Seoul Mayor Oh Sehoon is delivering a commemorative speech at the 'World Drug Day Commemoration Event' held at Seoul City Hall in Junggu, Seoul on the 23rd. 2025.6.23. Photo by Kang Jinhyung

During a press conference held in Milan, Italy on the 5th (local time), Mayor Oh said, "There must be a strong commitment to controlling the amount of money circulating in the market in order to truly stabilize real estate prices downward in the future. Seeing the government implement a supplementary budget of over 30 trillion won and then inject nearly another 20 trillion won into the market (as a second round), I cannot help but worry about whether they can actually control real estate prices."

He drew a clear line regarding the idea of designating additional areas such as Mapogu and Seongdonggu, beyond the three Gangnam districts and Yongsangu, as land transaction permit zones to stabilize Seoul housing prices. Mayor Oh said, "Announcing the land transaction permit system is a highly exceptional measure, used only in cases of extreme price surges. I do not believe now is the time to implement additional land transaction permit zones," adding, "The Ministry of Land, Infrastructure and Transport shares this view."

Mayor Oh emphasized the need to expand supply, highlighting the expansion of the Rapid Integrated Planning system. He said, "During the previous mayor's term, housing supply was in a virtual dark age and on the brink of collapse. I have made every effort to revive it through what could be called CPR (cardiopulmonary resuscitation)."

Referring to policies related to supply, Mayor Oh also hinted at the possibility of running in the local elections in June next year.

He said, "I have devoted myself to the rapid supply of housing, essentially inventing the Rapid Integrated Planning system, and I am very curious about how citizens will evaluate this. The most important criterion for deciding whether to run will be whether citizens believe I have done my utmost to address supply in the area of housing, which is of greatest concern to them."

He also revealed that he gained ideas for public housing policy during his trip to Vienna, Austria and Milan, Italy. He mentioned, "One approach is to create a fund, with a portion supported by the public sector, while using the fund as an incentive to encourage bold private investment." He added, "What I envied most was the way private sector vitality is harnessed in the supply of public housing."