Oh Sehoon: "Introducing Housing Promotion Fund... Will Accelerate Supply"

Plans to Establish 2 Trillion Won Housing Promotion Fund Over 10 Years
"Starting Construction and Moving In Are Key; Obstacles Will Be Removed"
"Shintong Planning Is More Efficient Than Public Redevelopment"
"Reconfirms No Consideration for Additional Land Transaction Permit Zones"

Seoul Mayor Oh Sehoon announced plans to establish the "Seoul Housing Promotion Fund" with a scale of 2 trillion won to increase housing supply. He emphasized that the city will strengthen management at each stage of redevelopment projects, such as implementing deadlines for project processing, in order to accelerate the pace of housing supply. Mayor Oh expressed concerns that the Lee Jaemyung administration's measures to promote public redevelopment and reconstruction are ineffective, and that measures such as issuing consumer coupons could lead to increases in real estate prices.

Seoul Mayor Oh Sehoon holds a press conference on the 3rd anniversary of his inauguration at Seoul City Hall on July 16, 2025.

At a press conference marking the third anniversary of his inauguration, held at Seoul City Hall on July 16, Mayor Oh stated, "We will be able to secure about 2 trillion won over 10 years by allocating 200 billion won annually. In addition to the previously planned volume, we can supply an additional 2,500 housing units per year."

This reflects criticism that the process of lifting the land transaction permit zone earlier this year contributed to rising housing prices in Seoul, and Mayor Oh presented policies aimed at expanding supply.

Seoul Housing Promotion Fund: 2 Trillion Won Over 10 Years

The city will first introduce the "Seoul Housing Promotion Fund." This initiative will provide financial incentives for actual costs such as construction and land acquisition, encouraging private sector investment. Mayor Oh said, "This could be a decisive turning point to further increase both the speed and incentives for housing supply. We will remain fully focused on the goal of normalizing the market by ensuring sufficient housing supply."

Regarding his bid for a fifth term, Mayor Oh stressed that citizens’ evaluations of housing policies are crucial and highlighted his achievements. He said, "During the previous administration, urban redevelopment was on the verge of collapse and new housing supply was nearly impossible, but now we have managed to restore a lifeline. Through various new initiatives such as Shintong Planning and Moa Housing, we have secured a certain amount of supply. Now, it is time to accelerate."

Mayor Oh also proposed stricter management up to and after the start of construction, emphasizing that expanding housing supply is the fundamental solution to alleviating anxiety among actual homebuyers. He mentioned the introduction of project processing deadlines and the expansion of electronic voting as measures to manage project progress.

He said, "What matters is to start construction and move in quickly, and it is important to remove obstacles and introduce systems that facilitate this. Accelerating project progress has become a matter of utmost urgency."

He further explained, "With the project processing deadline system, the period from candidate site selection to district designation will be limited to within one year, and to support early groundbreaking, the period from association establishment to groundbreaking will be reduced to less than six years. Pilot projects for early groundbreaking and the introduction of the 'Electronic Trio' (electronic voting, online general meetings, and electronic consent) will be implemented at each stage."

Regarding the possible expansion of land transaction permit zones, he reiterated his previous position, saying, "Policies like the land transaction permit system are emergency measures. Fortunately, thanks to the government's loan regulation policies, the rapid surge in prices seems to be under control to some extent, so I do not believe it is time to consider the permit system."

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

Shintong Planning Over Public Redevelopment... Criticism of Lee Jaemyung Administration Policies

Regarding the public redevelopment and reconstruction promotion measures announced by the government and the ruling party, Mayor Oh once again stressed the importance of policies that support revitalizing projects through private sector leadership.

He said, "Verification of which system is effective for achieving our goals has already been completed. After several years of operation, we have seen that even areas designated for public redevelopment have shifted toward private redevelopment. Shintong Planning is more efficient and faster than public redevelopment and reconstruction. Ultimately, the best policy is to supply a large quantity of quality housing at a rapid pace."

He also pointed out that after last month's announcement of loan regulations, the 600 million won cap on relocation loans could create constraints in the redevelopment process. He said, "There are people suffering due to the current 600 million won relocation loan limit, and this is an issue that the Ministry of Land, Infrastructure and Transport and Seoul City need to discuss. Seoul City is determined to mobilize every possible method as quickly as possible."

Mayor Oh continued his criticism of Lee Jaemyung administration policies, including loan regulations and the issuance of consumer coupons for economic recovery. He said, "While many people agree with loan regulations, there are certainly citizens who are bewildered by unexpected disadvantages. Resistance will grow over time. The principle that increasing the money supply raises housing prices has no exceptions. We must not ignore this and pursue contradictory policies."

Regarding the plan to apply a more flexible approach to "social mix," which involves mixing for-sale and rental housing within a single complex, Mayor Oh emphasized the "goal" of preventing delays in public housing supply.

He explained, "The city's fundamental goal is to ensure that supply is not delayed due to the social mix issue, and if used well, it could even provide ways to increase the supply of rental housing. That is why I called for a flexible response. It is not a matter for a separate principle announcement. I believe a natural solution will emerge."