Ruling Party: "Construction Starts Down Since Mayor Took Office" vs. Oh Sehoon: "Previous Mayor's Revocation of Redevelopment Zones to Blame" [2025 Audit]

"Only 4 Project Implementation Approvals Out of 119 Shintong Plan Areas"
Oh Sehoon: "389 Zones Deregulated During Previous Mayor’s Term"
Criticism Over "Lifting Land Transaction Permit Zones in Jamsil, Samseong, Daechi, and Cheongdam Fueled Housing

There has been criticism from the ruling party that since Oh Sehoon took office as Mayor of Seoul, the number of housing construction starts has decreased, and the pace of progress in areas undergoing the 'Shintong Planning' initiative has also slowed. Mayor Oh countered by arguing that the mass revocation of redevelopment zones during the previous mayor's term is causing the current supply shortage.

Yonhap News

At the National Assembly Land, Infrastructure and Transport Committee's audit held at Seoul City Hall on October 20, Song Kiheon, a lawmaker from the Democratic Party, stated, "When comparing housing permit and construction start figures over the four years and three months since Mayor Oh took office, there is a significant difference before and after his inauguration. The number of permits dropped from 310,000 to 220,000, and construction starts sharply declined between 2022 and 2024. Even after four years in office, the numbers have not increased, and the mayor must take responsibility for this."

He continued, "Despite various efforts through the Shintong Planning initiative, it has not been effective. A total of 119 areas have established Shintong Plans, of which 110 have formulated redevelopment plans, and only 66 have been designated as redevelopment zones. Among these 66, just 22 have received approval for association establishment, and only 4 have had project implementation plans approved."

Song further stated, "Even for the projects with approved implementation plans, I have doubts and concerns about whether they will actually proceed. For example, the Yeouido Daegyo Apartment, one of the four, seems realistically unlikely to happen. The district unit plan for this area requires a road width of 20 meters, with Daegyo Apartment securing 10.5 meters, but although this is proposed as a long-term plan, it appears unfeasible."

In response, Mayor Oh Sehoon said, "Redevelopment and reconstruction projects require the adjustment of many interests, so progress is not easy. We are closely monitoring the numbers in preparation for smooth progress, and our plan to secure 310,000 housing units by 2031 is something we are pursuing with all our efforts and is achievable under these circumstances. However, the October 15 measures have created even greater obstacles, so cooperation from the Ministry of Land, Infrastructure and Transport is necessary."

Mayor Oh added, "It has already been proven that the average time to designate a redevelopment zone has been reduced from five years to two and a half years. However, it takes more than ten years to start construction. If you ask why there are no construction starts, it shows a lack of understanding of the basic structure."

Mayor Oh emphasized that the revocation of redevelopment zone designations during the previous mayor's term led to the current supply cliff. He said, "During the previous mayor's term, 389 redevelopment zones were revoked. From 2011 to 2020, the volume of redevelopment projects designated as zones significantly decreased. The volume that was revoked or not designated at that time is the biggest cause of today's supply shortage."

Kim Jungjae, a lawmaker from the People Power Party, also defended Mayor Oh, saying, "Regarding housing supply, redevelopment and reconstruction are the only options for Seoul, but the issue of housing supply should not be equated with construction starts."

There was also criticism that the lifting of the land transaction permit zone in the Jamsil, Samseong, Daechi, and Cheongdam areas by the Seoul Metropolitan Government in February acted as a catalyst for the rise in Seoul housing prices. With the supply cliff situation, the lifting of the land transaction permit zone triggered a rise in housing prices starting in the three Gangnam districts, and in March, the number of apartment transactions in Seoul exceeded 10,000.

Yoon Jongoh, a lawmaker from the Progressive Party, pointed out, "One of the main reasons for the rise in Seoul apartment prices was Mayor Oh Sehoon's hasty decision in February to lift the land transaction permit zones in Gangnam and Songpa districts. Even within the People Power Party, there was criticism." Bok Giwang, a lawmaker from the Democratic Party, also questioned, "After lifting the land transaction permit zone, did you find out a month later that it was a mistake?"

Mayor Oh Sehoon countered that about a month after lifting the land transaction permit zone, it was re-designated, which stabilized real estate prices, and that the recent upward trend is unrelated.

Mayor Oh explained, "The land transaction permit system is an anti-market policy tool, so if it is not relaxed during normal times, it cannot be used as a policy tool during rapid price surges. Considering such circumstances, there was a clear need to resolve exceptional situations. After observing the market's sensitive reaction, we were able to promptly reverse course."

He continued, "Because we changed our position and took action within just four weeks, as shown by various indices, real estate prices were immediately brought under control. However, since real estate prices are currently rising so rapidly, there is now analysis that looks back and blames the lifting of the permit zone for the current surge, but I cannot agree with that."