Seoul Mayor Oh Se-hoon on the 7th said President Lee Jae-myung's daily posts on X (formerly Twitter) about housing policy amount to "real estate politics" aimed at the June 3 local elections.
Appearing on TV CHOSUN's "Gangjeokdeul" aired that day, Oh said of the president's recent housing policy posts on X, "They usually have an effect for a month or two. Knowing it's a two-month thing, he is raising his voice."
He added, "The market does not always move as policy designers intend," and said, "This time as well, after a short period of two to three months, it may instead move in a way that further stimulates housing prices."
In a recent post on X, the president said the temporary suspension of heavier capital gains taxes on multi-homeowners will end on May 9. He also wrote, "If a non-occupied single home is for investment or speculation rather than residence, tax breaks for long-term holding look odd" (Jan. 23), and "Switching to one 'smart' home? To be clear, if it's not for residence, it will probably be in your interest not to do that either" (Feb. 5). This was interpreted as signaling disadvantages even for "non-occupied single-home owners" who, for various reasons, do not live in the homes they own.
Oh said, "In Seoul, 48% are homeowners, 12% have two homes, and about 3% have three or more," adding, "Among them are people who, for various reasons, simply cannot put properties on the market, so it's hard to sustain (the policy) for long." It was interpreted to mean that even if heavier capital gains taxes are imposed on multi-homeowners, the government's hoped-for increase in listings would be hard to expect.
In the Jan. 29 housing supply plan, the government increased the housing supply in the Yongsan International Business District from the existing 8,000 units to 10,000. Oh said, "Even with 8,000 units, it becomes a chicken-coop apartment complex, and if you add 2,000 more, elementary, middle and high schools have to go in (on the site). Land must be secured separately to put in schools," adding, "Then the schedule is pushed back by two years from the original plan. Is that really a wise decision?"
Regarding government-level opposition, including from the Korea Heritage Service, to the redevelopment of Sewoon District 4 in front of Jongmyo, Oh said he believes President Lee is behind it. He said, "It's an aggressive stance we haven't seen before. Right now, all of that is quietly proceeding," adding, "I can't shake the thought that the president's intent is being reflected to some extent."
Within the ruling camp, Seongdong District Chief Chong Won-o is being mentioned as a strong candidate for Seoul mayor. The president has personally praised Chong. Chong argues that he helped develop Seongsu-dong during his 12-year tenure as Seongdong district chief, including by publishing a book titled "Seongsu-dong" last year.
On this, Oh said, "After creating an IT promotion zone in Seongsu-dong, when these people (office workers) came, stylish cafes also moved in, creating synergy from 2010 to 2015," adding, "I acknowledge that after taking office in 2014, District Chief Chong minimized administrative interference and allowed the private sector's creativity to blossom."
However, he said, "As soon as (Chong) took office as a first-term district chief in July 2014, the very first thing done was to enact an ordinance to prevent gentrification. By then it had already become a 'hot place' with soaring rents," adding, "It is an undeniable fact that Seongsu-dong had already, to use a colloquial expression, fully taken off by the time he received the handover."
Democratic Party lawmaker Jun Hyun-hee, who declared a run for Seoul mayor, pledged to dismantle the Dongdaemun Design Plaza (DDP) and build a "Seoul Dome Arena" on the site that can host K-pop performances. Oh said, "There is the Hunryeonwon site near DDP, and with the National Medical Center relocating there will be idle land, so I don't understand why anyone would propose tearing down something that functions perfectly well."