Oh Sehoon: President's "No Housing Price Measures" Remark Stimulates Real Estate Market

Mayor Oh Se-hoon Expresses Concern Over Stimulating Buying Sentiment
On the World Heritage Act Enforcement Decree: "Could Raise Constitutional Concerns"
Regarding Expansion of Yongsan Redevelopment Housing: "Delays in Supply"

Seoul Mayor Oh Se-hoon criticized President Lee Jaemyung's remark that "there are no measures to control housing prices," stating, "Such comments from the President could actually drive up real estate prices."

Seoul Mayor Oh Se-hoon is holding a meeting with residents on the 10th at the Daerim 1 District Rapid Integrated Planning Redevelopment Promotion Area in Yeongdeungpo-gu. Provided by Seoul City

On December 10, during his visit to the Daerim 1 District site, Mayor Oh spoke with reporters, saying, "If the President makes such statements, the market is likely to be significantly stimulated," and added, "Buyers may think, 'Prices will rise soon, so I should buy now.' I am deeply concerned that such remarks could trigger this kind of buying sentiment."

This was a criticism of President Lee's comments at a town hall meeting in Cheonan, South Chungcheong Province, on December 5, where he said, "I am often criticized because of housing prices in Seoul and the metropolitan area, but there are no solutions," and, "Due to structural factors, it is not easily resolved even if all policy resources are mobilized."

Mayor Oh explained, "When Lee Myung-bak was mayor, he designated 35 New Town districts, sending a strong signal to the market that there would be a significant increase in new housing supply, and I recall that about 60,000 urban-style housing units were also supplied," adding, "There are historically successful cases, and it is only when the government demonstrates its commitment that the market stabilizes."

He continued, "The October 15 measures may have had the effect of immediately suppressing demand, including real estate sales and rental transactions, but since they did not provide assurance regarding supply, the market remains as volatile as it is now," and added, "The government is in discussions with the Seoul Metropolitan Government, so we will do our utmost in that regard."

Seoul Mayor Oh Se-hoon is visiting the Daerim 1 District in Yeongdeungpo-gu, a rapid integrated planning redevelopment promotion area, to inspect the site on the 10th. Provided by Seoul City

Mayor Oh also expressed concerns about the government's push to amend the law regarding the redevelopment of the Sewoon 4 District near Jongmyo. On this day, Huh Min, Commissioner of the National Heritage Administration, announced that a draft amendment to the World Heritage Act Enforcement Decree would be announced for public comment within the month. Once the enforcement decree is promulgated, the agency intends to urge compliance with world heritage assessments.

He also announced plans to establish a notice requiring approval from the National Heritage Administration to construct large-scale buildings or facilities that could generate harmful factors within 500 meters of historical and cultural preservation areas.

In response, Mayor Oh pointed out, "This could raise constitutional concerns," and added, "It is excessive political action that cannot be interpreted as a normal administrative act."

When the possibility of retroactively applying these regulations to the Sewoon 4 District was raised, Mayor Oh stated, "The area has already been designated as a redevelopment promotion district, so now imposing a 500-meter restriction to block development is inconsistent with the principles of prohibition of excessive regulation and retroactive legislation," and added, "It is neither desirable nor appropriate for the government to introduce such measures, as it restricts citizens' fundamental rights by law."

Regarding the plan to increase the number of housing units in the Yongsan International Business District, Mayor Oh once again emphasized concerns about delays in the supply process.

Mayor Oh explained, "It is entirely possible to increase the number of units from 6,000 to 12,000, but the problem is that doing so will significantly slow down the process. As the number of units increases, basic infrastructure such as schools must also be included, requiring a complete revision of the basic plan and inevitably delaying the existing supply procedures. This could actually hinder housing supply and fail to stabilize the real estate market."

Regarding Minister of Land, Infrastructure and Transport Kim Yoonduk's statement at the National Assembly's Land, Infrastructure and Transport Committee plenary session that the ministry would review the legal validity of Seoul's "Garden of Appreciation" project, Mayor Oh asserted, "There are no legal issues whatsoever."

Mayor Oh said, "All legally required procedures have already been completed. I personally visited the site, discussed the matter, and handled all related issues in accordance with the law," adding, "When the Gwanghwamun Square redevelopment project began in 2020, the Ministry of Land, Infrastructure and Transport did not raise any objections."

He continued, "The same thing happened at Gwanghwamun Square under the previous mayor and the acting mayor, but there were no objections at the time. Now that Mayor Oh Se-hoon is in office, they are scrutinizing the regulations to find any possible violations, and making an issue out of it. I believe the citizens will judge the situation accurately," he added.