Oh Se-hoon Says "Policy Fixated on Actual Residence Should Be Completely Reconsidered"

[Financial News] Oh Se-hoon, Seoul Metropolitan City Mayor, argued on the 14th that "a full review should begin with policies fixated on actual residence that shake up the rental market and deepen the public's pain." He said continued housing supply is the answer and called for bold regulatory reform.
Oh made the remarks at the National Assembly while attending the People Power Party's floor leadership strategy meeting later that day.
He said, "The most urgent livelihood issue in Seoul right now is housing, without question. People cannot secure jeonse homes in the neighborhoods where they want to live, are burdened with unaffordable monthly rent, and homeownership keeps moving farther away." He added, "The fundamental solution to end this pain is a steady housing supply that the market can trust."
Regarding the government's supply measures announced on the 13th, Oh said, "It is at least fortunate that some of the regulatory improvements for redevelopment projects repeatedly requested by Seoul Metropolitan Government were reflected." He added, "However, the announcement process was deeply regrettable. Excluding Seoul Metropolitan Government, which carries out housing supply on the ground, from the policy-making process is not desirable."
He also pointed to the limits of the August 13 supply measures. Oh said, "Key regulations that block projects, such as restrictions on transferring membership status, floor-area ratio limits, and the share of rental housing in redevelopment projects, still remain." He added, "A situation that effectively infringes on citizens' freedom of movement continues. We must first abandon the idea of labeling people as speculators solely based on whether they live in a home."
He also voiced concern over higher real estate holding taxes and the possible abolition of the long-term holding special deduction. Oh said, "Violent tax hikes that shift the burden of policy failure onto the public must stop." He added, "Now is the time to answer with supply, not regulation or tax increases."
Jeong Jeom-sig, the floor leader, said at the same meeting that he questioned whether the Lee Jae Myung administration was treating the real estate supply measures as a kind of numbers game. He said, "The only sites announced so far are 27,000 homes in three areas: Seoul Gangseo, Namyangju, Gyeonggi Province, and Gwangju, Gyeonggi. The rest have not been decided, and the substance remains unclear."
Jeong added, "For urban areas that are already short on housing supply, the only newly announced item is 1,000 units in Seoul Gangseo." He criticized the plan, saying, "If they keep repeating announcements with nothing new and relying on number tricks for show, even the best policy will inevitably lose the trust of the market and the public."
The Democratic Party of Korea urged the People Power Party and Oh to cooperate in implementing the August 13 supply measures.
Han Byung-do, acting party leader and floor leader of the DPK, said at the Supreme Council meeting that "as soon as the government's rapid housing supply plan was announced, the People Power Party immediately launched a barrage of crude, blind criticism, calling it empty and hypocritical." He added, "Oh also criticized the government with provocative language, calling it a policy fixated on actual residence, even while saying he would actively cooperate where possible."
Han asked, "Does throwing around words make housing supply move faster when you are not fulfilling your responsibilities?" He continued, "How can they talk about supply while flatly refusing to pass bills meant to promote it?"
He went on to say, "We will no longer stand by. The DPK will take responsibility for the livelihood issues and housing stability that the People Power Party has abandoned." He added, "We will swiftly complete the handling of related bills so that housing supply can be improved dramatically."
[email protected] Lee Hae-ram Reporter