Oh Se-hoon: "October 15 Measures Are Negative for Maintenance Projects... Concerns Over Disrupted Housing Supply"

"Potential Increase in Contributions in Northern Seoul
Concerns Over Delays Due to Funding Shortages"

Seoul Mayor Oh Se-hoon expressed concerns that the government's recently announced "Measures to Stabilize the Housing Market" include elements that could negatively impact maintenance projects, warning that delays in reconstruction could destabilize housing supply.

At a meeting with the Seoul City Maintenance Project Association held at City Hall on the 16th, Mayor Oh stated, "The government's measures could increase reconstruction contributions for maintenance projects," highlighting his concerns.

Seoul Mayor Oh Se-hoon is greeting resident representatives of the Seoul City Maintenance Project Association on the 16th. Provided by Seoul City

He explained, "The reason Seoul is focusing on redevelopment and reconstruction is that, especially in the case of Seoul, supplying and maintaining new housing is essential for stabilizing the housing market. However, if financial capacity becomes an issue, it means the pace of reconstruction could slow down." He added, "If the speed of maintenance projects slows, all the efforts Seoul has prepared could be in vain."

Previously, last month, Mayor Oh launched "Sintong Planning 2.0," which aims to shorten the duration of maintenance projects. By streamlining various licensing procedures and easing regulations, the plan seeks to reduce the current average project period from 18 years and 6 months to within 12 years, thereby accelerating the pace of housing supply in Seoul. The city plans to start construction on 310,000 units by 2031 and supply 198,000 units in central areas such as the Hangang Belt.

However, Seoul City maintains that if government regulations delay maintenance projects, housing supply could also be adversely affected. Choi Jinseok, Director of Housing, said, "While we are accelerating the pace of supply, the government's measures are seen as demand-suppressing policies," adding, "We will monitor the impact at each stage."

The new regulations have also introduced variables that could affect the shortened project timelines under Sintong Planning. Director Choi pointed out, "New variables, such as the issue of transferring union member status, could directly or indirectly impact both housing demand and supply. There are various ways in which supply could be disrupted." He added, "Nevertheless, we will continue to cooperate with the stakeholders of maintenance projects despite the changing environment."

Previously, Seoul City also expressed discomfort, stating that there was insufficient consultation with the government during the designation process for land transaction permit zones. Seoul City explained, "There was only unilateral notification at the working level," and added, "We raised concerns about the side effects of designating the entire city as a land transaction permit zone, but the measures were enforced regardless."

In response, the Ministry of Land, Infrastructure and Transport countered that it had exchanged opinions with Seoul City. Kim Gyucheol, Director of Housing and Land at the Ministry, stated at a briefing on the "Measures to Stabilize the Housing Market" held the previous day, "Adequate guidance and explanation were provided to the 25 districts in Seoul and 12 in Gyeonggi Province that are subject to the measures. Both Seoul City and Gyeonggi Province agreed to the designation of regulated areas."