15 Seoul Districts Call for Withdrawal of Land Transaction Permit Zones... Demand Targeted Regulations [Real Estate AtoZ]

Seoul District Mayors' Council Issues Joint Statement Urging Withdrawal of Land Transaction Permit System
"Unilateral Regulations Distort the Real Estate Market"
Criticism of Government's One-Sided Decision, Proposal for Tripartite Policy Consul

Just one week after the announcement of the October 15 Measures, calls for the withdrawal of land transaction permit zones (LTPZ) are spreading across regions such as Seoul and Gyeonggi Province. Local governments have raised issues with the implementation of these measures, arguing that they infringe upon residents' property rights and were carried out without consultation.

The Seoul Metropolitan Council of District Mayors held a joint press conference on the afternoon of the 22nd at the briefing room on the 2nd floor of Seoul City Hall, where 15 district mayors from opposition parties issued a joint statement calling for the withdrawal of the October 15 Housing Stabilization Measures. Provided by the Seoul Metropolitan Council of District Mayors

On October 22, the Seoul Metropolitan Council of District Mayors, together with 15 district mayors, issued a joint statement at Seoul City Hall demanding the withdrawal of the October 15 Housing Stabilization Measures.

Seo Gangseok, president of the Council and mayor of Songpa District, stated, "By designating the entire city of Seoul as a land transaction permit zone and a speculative overheated district-the strongest real estate regulations-these measures are increasing inconvenience for residents and distorting the housing market."

The Council emphasized, "Because the land transaction permit zone is the most severe restriction on private property, it should be applied only in extremely exceptional cases and in a highly targeted manner. This designation was made unilaterally without consultation with Seoul City or the district governments, disregarding the collaborative structure of local autonomy."

The Council further noted, "The city and district governments are already strengthening institutional support for expanding housing supply, such as through expedited integrated planning for redevelopment and reconstruction. Real estate market stability should be achieved not by tightening regulations, but by expanding supply and providing administrative support."

The 15 district mayors called for the immediate withdrawal or at least minimization of the land transaction permit zone designation, the establishment of a tripartite policy consultative body involving the central government, Seoul City, and district governments, and the development of deregulation-focused measures that reflect voices from the field. The districts participating in the statement were Gangnam, Seocho, Songpa, Yongsan, Mapo, Gwangjin, Yangcheon, Yeongdeungpo, Dongjak, Gangdong, Dongdaemun, Jung, Jongno, Seodaemun, and Dobong-all 15 districts governed by the People Power Party.

Kim Byungmin, Deputy Mayor for Political Affairs of Seoul, also stated at the press conference, "Excessive regulation limits the options of genuine buyers and increases the burden of relocation costs and contributions, thereby weakening the momentum for redevelopment projects. While these measures may temporarily dampen transactions, in the long run, they will lead to a rigid housing market and trigger a crisis in the rental and lease market."

With the entire city of Seoul designated as a land transaction permit zone starting October 20, local governments are concerned about a surge in resident confusion and complaints.

Seo Gangseok, president of the Council, said, "In Songpa District, the number of land transaction permit applications was about 1,000 per year, but after the entire district was designated, it increased to 3,500 by October. Now, all apartment transactions require permits, which sometimes conflicts with tenants' contract renewal rights. Although Songpa District has only three staff in charge, all employees are now involved, and phone complaints are pouring in."

Additionally, lifting the land transaction permit zone designation could cause a sharp short-term price increase, making it difficult to decide on lifting the regulation. Previously, Seoul City lifted the designation for Jamsil, Samseong, Daechi, and Cheongdam in February, but as real estate prices surged, it expanded the designation to all of Gangnam's three districts and Yongsan District within a month.

Seo Gangseok stressed, "Regulations cannot be permanent, but lifting them itself can shock the real estate market. I do not believe that designating the entire city is an appropriate measure."

Seo Gangseok added, "The government has unilaterally implemented measures that it can take, but the city and district governments have no immediate legal or institutional actions they can take. We hope the government will listen to and reflect the voices from the field-that is the essence of democracy."

Meanwhile, on October 21, Uiwang City in Gyeonggi Province issued a statement to the Ministry of Land, Infrastructure and Transport, requesting a complete review of the designation of adjusted areas, speculative overheated districts, and land transaction permit zones. Uiwang City explained that it has maintained a stable housing market focused on genuine buyers and that a blanket application of regulations could worsen the situation for such buyers, making a review necessary.

The government has designated all of Seoul and 12 areas in Gyeonggi Province-including Gwacheon, Gwangmyeong, Bundang, Sujeong, and Jungwon districts in Seongnam, Yeongtong, Jangan, and Paldal districts in Suwon, Dongan District in Anyang, Suji District in Yongin, Hanam, and Uiwang-as adjusted areas and speculative overheated districts.