Seoul City presented a housing supply expansion plan focused on easing regulations for reconstruction and redevelopment at a Cabinet meeting. President Lee Jae-myung requested a separate report on the current status of Seoul's maintenance projects and the reasons for the supply shortage.
Oh Se-hoon, the Mayor of Seoul, attended the Cabinet meeting chaired by President Lee on the morning of July 14. This marked Oh's first attendance at a Cabinet meeting since his re-election and his first in about 11 months since August of the previous year.
Initially, it was expected that Oh would directly explain the need for regulatory easing and housing supply expansion. However, he did not receive an opportunity to speak. During the meeting, he stated, "I have submitted the report prepared by Seoul City to the Chief of Policy, the Minister of Land, Infrastructure and Transport, and the Deputy Prime Minister. Since it seems I won't have a chance to speak today, I will refer to the report's contents instead."
In response, President Lee said, "Please report on how the reconstruction and redevelopment in Seoul are currently progressing, and why there is a general shortage of supply."
Prime Minister Han Seung-soo also mentioned the upcoming national discussion forum on housing stability, suggesting that the matter be discussed further.
The key proposals submitted by Seoul City focus on easing regulations for maintenance projects. The city requested an increase in the loan-to-value ratio (LTV) for relocation loans related to maintenance projects to 70% and asked for a relaxation of loan regulations to secure additional contributions. They also requested improvements to restrictions on the transfer of membership status and regulations on floor area ratio and rental housing for private maintenance projects.
Seoul City believes that if loan and project-related regulations remain in place, the schedule for maintenance projects will be delayed, leading to a long-term housing supply shortage. The city plans to start construction on 310,000 housing units in Seoul by 2031 and designate 85 areas as key strategic maintenance zones that can begin construction within three years to accelerate supply.
However, since key systems such as loans, taxation, and restrictions on the transfer of membership status fall under the central government's authority, Seoul City acknowledges that improvements to its own administrative procedures alone will have limitations. The city believes that the government's institutional improvements must accompany these efforts to enhance the effectiveness of supply expansion through maintenance projects.
On the same day, the government began a series of discussions starting with a forum hosted by the Ministry of Land, Infrastructure and Transport on housing supply expansion for public housing stability. This will be followed by discussions hosted by the Financial Services Commission on the 15th and the Ministry of Economy and Finance on the 16th. A national discussion forum on real estate, which President Lee will attend, is scheduled for the 23rd to discuss overall real estate policies, including housing supply, finance, and taxation.
* This article has been translated by AI.
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