Seoul Launches Full-Scale Push for Oh Sehoon's Housing Promotion Fund... Ordinance Draft Announced

Duration Set Until 2030... Extension Possible if Needed
Initiative Aims to Accelerate Supply of Public and Private Rental Housing

Seoul Mayor Oh Sehoon is holding a press conference on the third anniversary of his inauguration at Seoul City Hall on the 16th of last month.

The Seoul Metropolitan Government is moving forward in earnest with the introduction of the Housing Promotion Fund, which aims to accelerate the supply of public and private rental housing.

According to the city on August 5, the previous day saw the legislative notice of the "Ordinance on the Establishment and Operation of the Seoul Housing Promotion Fund," which stipulates the fund's financial resources and management direction.

According to the ordinance, the Seoul Housing Promotion Fund will remain in effect until December 31, 2030. If it is deemed necessary to maintain the fund after this period, it may be extended.

The fund's financial resources will come from transfers from the general and special accounts and other funds; dividend income paid by Seoul Housing and Communities Corporation to the city; transfers from the Urban and Residential Environment Improvement Project Account; cash paid to the city by project implementers seeking floor area ratio relaxation; and income generated from fund operations.

The fund can be used for supporting land purchases and construction costs for public-supported private rental housing project implementers, providing housing cost support for tenants of public-supported private rental housing, revitalizing redevelopment projects, and promoting the supply of public housing. The head of the Seoul Housing Policy Office will serve as the fund manager, and the "Seoul Housing Promotion Fund Management Deliberation Committee" will be established to review matters related to fund management. The legislative notice period runs until August 8, and the ordinance will be finalized after deliberations by the Ordinance and Regulation Review Committee and the Seoul Metropolitan Council.

Previously, on July 16, Seoul Mayor Oh Sehoon stated at a press conference marking his third year in office, "We intend to introduce a 'Public Housing Promotion Fund' in Seoul," adding, "In addition to incentives such as floor area ratio and building coverage ratio, this will open the way for direct financial incentives for real costs such as land purchase support, construction loan financing, and interest support."

At that time, the city announced plans to contribute 200 billion won annually to the fund, securing a total of approximately 2 trillion won over 10 years. However, the ordinance specifies the fund's duration until the end of 2030.