"As Money Supply Increases, Housing Prices Will Ultimately Rise"
Seoul Mayor Oh Sehoon criticized the Lee Jaemyung administration for simultaneously implementing livelihood recovery consumption coupons and real estate loan regulations, stating, "It is a global phenomenon that housing prices rise in proportion to the increase in money supply," and emphasized, "We should not ignore this fact and pursue self-contradictory policies."
At a press conference marking the third anniversary of his inauguration held at Seoul City Hall on July 16, Mayor Oh was asked to evaluate the new government's policies. He responded, "If the new administration issues consumption coupons and injects money into the market at the beginning of its term, it may stimulate consumption to some extent, but ultimately, it leads to an increase in the money supply," making his position clear.
Seoul Mayor Oh Sehoon holds a press conference on the 3rd anniversary of his inauguration at Seoul City Hall on July 16, 2025. Photo by Yoon Dongju
He also pointed out that the issuance of consumption coupons increases the debt burden on local governments. Mayor Oh said, "The central government initially said it would cover all the costs, but then shifted a portion of the financial burden onto local governments, forcing the city and districts to take on debt. While taking on debt to stimulate the economy was justified during the COVID-19 pandemic and the IMF crisis, there should be a debate on whether the current situation warrants such measures."
Mayor Oh went on to say, "Temporarily injecting money into the economy is the worst of all possible policies. It may be tolerated because it is the early stage of the administration, but even the Democratic Party seems to recognize that this is not a policy tool that can be used repeatedly in the future." He added, "Seoul can tighten its belt and cooperate by taking on debt once, but I want to make it clear that repeated use of this approach is unacceptable."
He then proposed that his signature policy, 'Didimdol Income,' is a more rational alternative than consumption coupons. Didimdol Income is a program in which the Seoul Metropolitan Government supplements the household income of families earning less than 85% of the median income, making up for the shortfall compared to the standard income. It is a 'progressive support' system, providing more assistance to those with lower incomes.
Mayor Oh stated, "If the central government were to adopt Didimdol Income instead, I would acknowledge it as a more timely and useful policy, especially considering the current situation with many self-employed people closing their businesses. Although such a policy is already well-developed, I reluctantly agree to the stubborn insistence on temporary cash injections, but I must stress that it is by no means a desirable policy."
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