Oh Se-hoon, the Mayor of Seoul, sharply criticized President Lee Jae-myung's comments regarding redevelopment and reconstruction, calling them "misguided perceptions." He particularly pointed out the contradiction in acknowledging the difficulty of developing new land in Seoul while denying the supply effects of urban renewal projects.
On July 24, Oh posted on his Facebook page an article titled, "If you take a test with the answers hidden, the result will be a failure," where he strongly criticized the President's views expressed at the previous day's "National Forum on Real Estate Policy."
Oh stated, "The President lamented that it is nearly impossible to find land for development in Seoul, yet he claimed that reconstruction does not significantly increase supply and that redevelopment actually reduces the total number of households. This is a denial of the supply effects of redevelopment and reconstruction, which are essentially the only large-scale supply methods available in Seoul, despite acknowledging the reality that there is no more land to build homes."
He questioned, "Where is the greater contradiction than this?"
"Seoul's Urban Renewal Will Add 87,000 Units... 2.7 Times the Government's Plan"
Oh argued that the President's statements do not align with objective figures. He explained that the city aims to start construction on over 310,000 units through ongoing urban renewal projects by 2031, expecting a net increase of about 87,000 housing units.
This figure is approximately 2.7 times greater than the expected net increase of 32,000 units in the Seoul area from the government's "1·29 Real Estate Policy."
He emphasized that reconstruction typically yields an average supply increase of about 40%, while redevelopment achieves an average increase of about 15% through zoning changes and relaxed floor area ratios.
Oh noted, "The Seoul city government has continuously requested the national government to relax the legal upper limit on private urban renewal projects by 1.2 times precisely because of these supply effects."
"Generalizing Specific Cases Misleads the Facts"
Oh also pointed out that the President's interpretation of certain redevelopment cases as representative of all urban renewal projects is problematic. He acknowledged that in some redevelopment projects in areas with dense multi-family housing, the number of units may decrease based on existing household calculations. However, he criticized the notion that this is a general phenomenon across all redevelopment efforts, stating, "This is limited to specific projects, and to present it as a common occurrence misrepresents the facts."
He added, "If there is a supply shortage in some projects, we can increase housing supply through institutional improvements, such as separating housing units."
"Redevelopment Represents Hope for Life... Misleading Signals Increase Market Anxiety"
Oh stressed that the significance of redevelopment and reconstruction should not be viewed solely through the lens of housing supply numbers.
He remarked, "In areas like Changsin-dong in Jongno, where redevelopment is imminent, the steep and dilapidated environment makes it difficult for elderly residents to even go outside, and fire trucks cannot access these areas. For these residents, redevelopment is not just a real estate project; it is a hope for a better life."
He continued, "It is a basic desire for everyone to want to live in a safer and more comfortable home, and ensuring a sufficient supply of desirable housing is the most important policy for improving quality of life."
Oh argued that every time the President expresses such views, the public interprets it as a signal that supply through urban renewal projects will become more difficult under this administration, which exacerbates anxiety and prompts people to feel they need to buy homes immediately, further destabilizing the market.
He concluded, "Recognizing the supply effects of urban renewal projects is the only way to solve the problem. If we continue to repeat the mistakes revealed in the last test, such as the flawed tax policy, the outcome will inevitably be another failure."
Oh announced that the Seoul city government plans to submit a detailed report on urban renewal projects to the presidential office soon, stating, "We will do our utmost to alleviate citizens' housing anxiety without wavering under any circumstances."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.