Seoul Mayor Oh Se-hoon on the 23rd said about the Oct. 15 housing market stabilization measures that designated all of Seoul as a land transaction permit zone, "Seoul residents have fallen into panic. The entire nation will suffer the damage."
Oh stated accordingly at the National Assembly audit of the Seoul Metropolitan Government by the Public Administration and Security Committee held at Seoul City Hall that day. In response to a question about how Seoul residents are reacting to the Oct. 15 measures, he said, "It has already been widely covered in the media, but when it comes to real estate, we assess it as close to panic."
Oh said, "If real estate prices rise sharply, including for Seoul residents, the entire nation will become the victims," adding, "Those without dwellings, couples planning to marry, and young people will face a frustrating situation."
Regarding the designation of land transaction permit zones, Oh said, "In the short term, it may have an effect, but in the mid to long term, the side effects will be greater," adding, "The land transaction permit system is easy to designate but very difficult to lift." He went on to say, "From the outset, the designation of the land transaction permit system should have been handled prudently."
When Rep. Seo asked whether the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government consulted during the process of formulating the measures, Oh replied, "There was no consultation worthy of being called consultation." Regarding the central government's approach to consultation, he said, "I suspect they simply did not want to hear Seoul's detailed position." He added, "From the beginning, I express deep concern and regret that it was designated without sufficient discussion with the city."
Oh said he would pursue market stabilization through supply-focused policies rather than regulation. As specific methods, he proposed revitalizing redevelopment and reconstruction. He said, "As a city, Seoul has almost no land that is available and can supply dwellings on a large scale," adding, "That is why reconstruction and redevelopment projects are the method for supplying new dwellings."
On the debate over a shortage of supply in Seoul, he said, "A major cause is the construction industry slump that makes groundbreaking difficult," adding, "Seoul has implemented every institutional approach possible."