Seoul Mayor Oh Se-hoon has directly countered the ruling party's criticism regarding the city's housing supply issues, attributing the current supply crisis to the actions of former Mayor Park Won-soon. Oh likened Park's housing policies to "uprooting the seeds of supply and spreading herbicide," arguing that it is unfair to hold him accountable based solely on current supply figures while ignoring the long-term effects of past redevelopment projects.
During a National Assembly audit of the Seoul Metropolitan Government held on the morning of October 19, Oh responded to Democratic Party lawmaker Jang Jong-tae's comments about the housing supply gap between Gangnam and non-Gangnam areas. Oh stated, "Most of the areas that were deregulated are in the northern part of the city," asserting that past deregulations have sequentially impacted the approval, construction, and completion of housing projects.
Oh emphasized that redevelopment and reconstruction projects take many years to result in actual occupancy, suggesting that evaluating the current supply figures requires examining the processes of past redevelopment initiatives. Jang pointed out that an analysis of data from the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport showed that the average monthly completion rate in the three districts of Gangnam increased by 11.5% before and after Oh's inauguration, while it decreased by 43% in the remaining 22 districts. He highlighted that Gangnam saw a 77.3% increase, while districts like Yangcheon, Yeongdeungpo, and Yongsan experienced declines of 70% to 90%, emphasizing the regional disparities.
Jang also noted that the approval rates during Oh's tenure dropped by 5.3% in Gangnam and by 14.5% in the other 22 districts, demanding an explanation for the significant decline in approvals outside Gangnam.
In response, Oh acknowledged the regional supply disparities but offered a different interpretation of their causes. He argued that comparing only the current results does not adequately explain the long-term trends of redevelopment projects. Oh presented data indicating that 389 redevelopment zones were deregulated during Park's administration, resulting in the loss of a supply base for approximately 430,000 housing units. He claimed that the concentration of deregulated areas in northern Seoul has had lasting effects.
Oh stated, "Most of the deregulated areas are in the northern part of the city," and warned that the sequential impacts of these decisions would lead to reduced project approvals, management decisions, relocations, construction, and completions over the next 5, 10, or even 15 years.
While Jang sought to hold the current administration accountable for the supply figures before and after Oh's inauguration, Oh countered that the timeline and progression of the projects that generated those figures must be considered. The debate shifted from a simple comparison of supply numbers to the timing of housing supply and the continuity of policies.
Oh emphasized that redevelopment and reconstruction processes are medium- to long-term procedures that can take anywhere from 12 to 21 years. He explained that even housing completed during his current term may have originated from projects initiated by previous mayors. He argued that a significant portion of the housing completed during Park's tenure was based on approvals granted during his first term. Conversely, he maintained that the current supply gap reflects the impact of the deregulation of redevelopment zones during Park's administration.
In concluding his remarks, Oh likened redevelopment projects to farming, stating, "The seeds were planted, and when the sprouts began to emerge, they were handed over to Mayor Park Won-soon, who uprooted them and spread herbicide." He added, "I have come back to cultivate the land again, plant seeds, and wait for the sprouts to emerge," emphasizing that even if redevelopment projects are resumed, time is needed for actual construction and occupancy. He argued that both current supply figures and ongoing projects should be evaluated together.
The two officials also presented contrasting interpretations of the market conditions surrounding the deregulation of land transaction areas. Jang claimed that signs of instability in prices and transaction indicators emerged before the deregulation of 291 complexes in Jamsil, Samsung, Daechi, and Cheongdam-dong in February of last year. He noted that internal reviews by the Seoul Metropolitan Government deemed some regional indicators unstable, yet the regulations were lifted, leading to a reversal of the decision within 35 days, prompting him to question the policy judgment.
In response, Oh pointed to a graph he had prepared, indicating a downturn in December 2024, and stated that there were concerns about market stagnation at that time. He referenced assessments from major financial institutions and research organizations to explain the rationale behind the deregulation.
Oh rebutted Jang's assertion that the deregulation occurred when the real estate market was already moving upward, stating, "You asked as if I deregulated when the market was already active and trending upward." He presented the preceding stagnation trends and the conditions that influenced the policy decision.
Oh concluded by requesting cooperation from the government and the National Assembly to expand housing supply, stating, "For the ongoing redevelopment and reconstruction projects to continue, the government must provide fertilizer and help pull out the weeds. I hope the National Assembly will assist us significantly."
* This article has been translated by AI.
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