Kim Yoon-duk and Oh Se-hoon Stress "Cooperation on Housing Supply" ... Differ on Delegating Approval Authority to Districts [Real Estate AtoZ]

Minister and Mayor Emphasize Cooperation
Kim Yoon-duk: "We Will Work Closely Together on Seoul's Housing Supply"
Mayor Oh Raises Concerns Over Redevelopment Regulations, Including Transfer of Union Membership Status
Ministry of Land and Seoul City to Establish Director-General Level Communication Channel

Minister of Land, Infrastructure and Transport Kim Yoon-duk and Seoul Mayor Oh Se-hoon have pledged to cooperate on expanding housing supply in Seoul. They agreed that increasing supply is crucial for stabilizing real estate prices and decided to continue working-level meetings at the director-general level. This meeting is especially significant as Mayor Oh had recently expressed opposition to the government's real estate policies and supply plans. However, the two sides showed differing views on the proposal to transfer the approval authority for small-scale redevelopment projects to district offices in order to accelerate supply.

Seoul Mayor Oh Se-hoon and Minister of Land, Infrastructure and Transport Kim Yoon-duk greet each other before lunch at a restaurant in Jung-gu, Seoul on the 13th. Photo by Seoul City

On the 13th, after a lunch meeting with Mayor Oh at a restaurant near Jeongdong in Jung-gu, Seoul, Minister Kim told reporters that although they did not discuss the lifting of the Seoul greenbelt in detail, they clearly shared the intention to work together on various measures necessary to increase housing supply in Seoul. Minister Kim stated, "The city and the Ministry of Land, Infrastructure and Transport are committed to working together on supply issues to stabilize the real estate market, and I believe the greenbelt issue should also be discussed."

On this day, Mayor Oh conveyed to Minister Kim the difficulties caused by regulations that restrict the transfer of union member status and limit the number of union-supplied housing units, which are included in the October 15 real estate measures. Mayor Oh explained, "I shared the challenges being experienced in the field since the October 15 measures, and the Minister promised to continue reviewing these issues in depth. We also agreed to establish a channel for frequent communication at the director-general level to minimize inconvenience for Seoul citizens."

Regarding the issues raised by Mayor Oh, Minister Kim said, "There are more than 18 specific points. If something cannot be resolved, there is no other choice, but we will review many of these issues positively and provide clear answers." On the subject of loan regulations, Mayor Oh noted, "There are issues that can only be resolved through discussions with financial authorities. Through the Minister, I will seek the opinions of the financial authorities and cooperate where possible, and there may be matters I need to request in person as well."

Seoul Mayor Oh Se-hoon and Minister of Land, Infrastructure and Transport Kim Yoon-duk are exchanging greetings before lunch at a restaurant in Jung-gu, Seoul on the 13th. Provided by Seoul City

However, the two sides showed differences of opinion regarding the delegation of approval authority for small-scale redevelopment projects to district offices to expedite housing supply. Last month, Minister Kim visited Seongsu District 1 and identified 'delays in approvals' as a bottleneck in redevelopment projects. Jeong Won-oh, the head of Seongdong District Office, argued that since redevelopment approvals are processed through a single Seoul city channel, projects are delayed and authority should be delegated to the districts. Following this, the government and the ruling party also raised the issue of transferring approval authority.

In response, Mayor Oh maintained that granting such authority should be approached cautiously, as practical coordination is needed, especially regarding the timing of resident relocation. Mayor Oh said, "If approval authority is transferred to the districts, there will be considerable confusion in the market. All district offices want to push projects forward quickly, and district heads face strong pressure from local communities."

Mayor Oh further explained, "More than 100 redevelopment projects are underway, and at a certain point, after the management and disposition plan is approved, relocation plans must be made and residents must move. If the timing of relocation is not coordinated among districts, there is a risk of a rental crisis." He added, "Every system is established for a reason, and if it is suddenly changed, unexpected side effects can occur." Regarding the delegation of authority to districts, Minister Kim responded, "I understand the Mayor's concerns. We will resolve specific issues through detailed discussions."

When asked about the proposal by the ruling party to build 20,000 housing units at the Yongsan maintenance depot as one of the housing supply sites, Minister Kim replied, "We did not discuss this issue in detail today. We will talk about it at another opportunity."

This meeting between the two took place about a month after the announcement of the real estate measures last month. Mayor Oh said, "Even if we establish a discussion channel at the director-general level, there are issues that require direct meetings to find solutions, so I will invite you for another meal at the official residence before too long."

Previously, during last month's National Assembly audit, Mayor Oh pointed out that the designation of the entire city of Seoul as a land transaction permit zone was made without prior consultation with the Ministry of Land, Infrastructure and Transport and that he was only notified just before the announcement. He also described the October 15 measures as "excessive." Mayor Oh has argued that housing supply should be led by the private sector, criticizing the government's public-sector-led approach as "repeating a failed supply method."

This content was produced with the assistance of AI translation services.