Concerns over the 4th wave of COVID-19 prompt calls for differentiated government response; Gangnam reconstruction apartments surge by 200-300 million KRW; caution urged on sensitive issues like Sejong-ro restructuring pledges; external appointments in Seoul city administration may cause instability from the start.

Mayor Oh Se-hoon (Photo by Yonhap News)

Mayor Oh Se-hoon (Photo by Yonhap News)

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[Asia Economy Reporter Park Jong-il] Seoul Mayor Oh Se-hoon is drawing attention as he is being evaluated as showing signs of instability from the start.


Mayor Oh, who made a comeback as Seoul mayor after 10 years through the April 7 by-election, has been voicing his own opinions on COVID-19 response methods, signs of real estate price surges due to possible easing of reconstruction regulations, and the construction of Sejong-ro since his inauguration, but concerns about side effects have led to evaluations of instability.


On the 8th, upon his inauguration, Mayor Oh visited Kim In-ho, chairman of the Seoul Metropolitan Council, bowing deeply to request cooperation, but he began to express independent opinions on the construction of Sejong-ro and COVID-19 response methods.


In particular, on the 9th, he announced plans to create a Seoul city-specific response manual different from the government’s quarantine measures, raising concerns.


◇Claiming Differentiation from Government COVID-19 Quarantine Response... Concerns Over Triggering the 4th Wave


At a COVID-19 countermeasure meeting held at Seoul City Hall on the 9th, Mayor Oh said, “It has been 1 year and 4 months since the COVID-19 response began, and we must reflect on whether Seoul City has done everything it should,” and instructed, “Establish social distancing measures different from the central government.”


Mayor Oh also said, “Although the best efforts may have been made, after a year, we have only complied with the central government’s stepwise responses such as levels 1, 2, 2.5, and 3, but we must deeply reflect on whether we have truly listened to the desperate appeals of small business owners on the ground.” He added, “Create tailored measures by industry. It is time to emphasize special measures to address the sales damage of small business owners.” In effect, he instructed to reconsider and possibly ease or adjust measures such as the “9 PM or 10 PM business closure” from scratch.


As these remarks became known, with 600 to 700 new COVID-19 cases occurring daily and the government taking strong measures such as banning operations of entertainment facilities in the Seoul metropolitan area including Seoul, Gyeonggi, and Incheon due to concerns over the 4th wave, voices are emerging that Seoul City’s differentiated response from the central government might lead to a widespread outbreak.


A Seoul city official said, “It seems Mayor Oh hastily made remarks to show a differentiation strategy from the current government after his inauguration, but if it leads to the 4th wave, we worry about how the damage will be compensated.”


Perhaps due to these concerns, Mayor Oh later showed a slight retreat, saying, “We intend to select pilot areas and prepare response plans.”


That afternoon, he visited the Seoul Municipal Seobuk Hospital in Eunpyeong-gu, a dedicated COVID-19 hospital, and told reporters regarding the government’s announced ban on gatherings at entertainment facilities in the metropolitan area, “We will first follow the central government’s intent and principles,” and added, “It is not that Seoul City intends to implement completely different guidelines from the central government, but rather to conduct a pilot project to experiment which method can reduce economic and sales damage while increasing the efficiency of social distancing.”


◇Real Estate Market ‘Unstable’ Due to Reconstruction... Already, Reconstruction Target Apartments in Apgujeong and Yeouido See Price Hikes of 200 to 300 Million KRW


During the election campaign, Mayor Oh pledged to ease redevelopment and reconstruction regulations.


As a result, even before the campaign ended, there were talks that “if Mayor Oh is elected, redevelopment and reconstruction will be revitalized,” and prices in the relevant complexes began to rise.


According to a report by an Asia Economy reporter at a real estate agency office in Yeouido, Yeongdeungpo-gu, “As soon as Oh Se-hoon was elected Seoul mayor, prices in reconstruction complexes in the area jumped by 200 to 300 million KRW. There is great expectation that district unit plans, which had long hindered reconstruction projects, will soon be resolved.”


With Mayor Oh’s election, who campaigned on full deregulation, expectations are rising in major Seoul complexes pursuing reconstruction. It is anticipated that the approval procedures for project implementation in areas where Seoul City had previously withheld permits due to concerns over rising housing prices will proceed quickly.


Especially in Yeouido and Apgujeong areas, homeowners are withdrawing listings amid expectations that housing prices will rise further following Mayor Oh’s election.


Several years ago, Mayor Park Won-soon held a press conference in Singapore mentioning a large-scale reconstruction plan for Yeouido, but it was canceled due to a surge in real estate prices.


Therefore, Seoul’s real estate issue is like a dormant volcano that could erupt at any time and must be handled very cautiously.


Nonetheless, it seems natural that the real estate market is already stirring with Mayor Oh’s election, who called for easing reconstruction regulations to expand apartment supply in Gangnam, Yeouido, Yangcheon-gu, and other areas.


However, to ease height restrictions on riverside apartment reconstructions, Seoul City Council must agree to amend ordinances, which is a difficult hurdle and not an easy issue.


On the 8th, Mayor Oh Se-hoon visited Kim In-ho, the chairman of the Seoul Metropolitan Council, as his first schedule since taking office to request cooperation.

On the 8th, Mayor Oh Se-hoon visited Kim In-ho, the chairman of the Seoul Metropolitan Council, as his first schedule since taking office to request cooperation.

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◇Opposition to Gwanghwamun Plaza Construction


With Mayor Oh’s election, concerns are emerging about whether the Gwanghwamun Plaza redevelopment project will proceed properly.


Mayor Oh has consistently expressed opposition to this construction and pledged to halt it completely.


So far, Seoul City has judged that Gwanghwamun Plaza is insufficient for citizens’ use and since 2019 has communicated with local residents and civic groups to gather opinions. The main issues identified were inadequate historical space, road severance in the middle of the street, lack of convenience facilities, and a space full of noise and exhaust fumes. In September last year, Seoul City decided to invest 79.1 billion KRW to create a pedestrian-friendly space around Gwanghwamun.


The construction, which began in November last year, is removing the west side lane near Sejong Center and turning it into a plaza. Instead, the east side lane near the U.S. Embassy is being widened to alleviate traffic congestion. The first phase of construction has been completed, and since last month, vehicles have been traveling in both directions on the east road.


However, since Mayor Oh has criticized this project since his candidacy, if he decides, the second phase of plaza facility construction scheduled to start in May is uncertain.


Nonetheless, Mayor Oh stated, “I intend to uphold the principle of not arbitrarily stopping work started by the previous mayor,” and “Once I become Seoul mayor, I will fully collect citizens’ opinions and establish a plan to handle the Gwanghwamun redevelopment issue.”


Regarding this, Kim In-ho, chairman of the Seoul Metropolitan Council, appeared on MBC Radio’s “Kim Jong-bae’s Focus” on the 9th and said, “This was a decision made after much deliberation by our council, and a lot of budget has already been invested. Stopping this project now would only cause confusion.”


He also explained, “Since this matter involves budget allocation, council approval is required to halt it.”


Why Are There 'Concerns' About Mayor Oh Se-hoon's Start?... "He Must Be More Careful With Words and Actions" View original image

◇Rumors of External Appointments to Deputy Mayor Positions Stir Anxiety Among City Hall Staff


Since Mayor Oh’s inauguration, three deputy mayors?Seo Jeong-hyeop (Administrative Deputy Mayor 1), Kim Hak-jin (Administrative Deputy Mayor 2), and Kim Woo-young (Political Deputy Mayor)?have tendered their resignations.


Accordingly, successors are expected to be appointed over the weekend, and rumors of external appointments are circulating, heightening tension within City Hall.


In particular, rumors are spreading that a certain Mr. Mo, a former Seoul City official, has been nominated as Administrative Deputy Mayor 1, and speculation about the comeback of retired public officials is causing nervousness.


Circulating leaflets around Seoul City mention Administrative Deputy Mayor A, Administrative Deputy Mayor B, Political Deputy Mayor C, Chief of Staff D, and Administrative Director E.


When Park Won-soon became mayor through the 2011 by-election after Mayor Oh resigned due to the failure of the free school meal referendum, external appointments such as Kim Sang-beom (Administrative Deputy Mayor 1), Moon Seung-guk (Administrative Deputy Mayor 2), and Ki Dong-min (Political Deputy Mayor) caused a negative atmosphere among staff.


If a large number of external appointments are made again this time, criticism that it will be “Park Won-soon Season 2” is expected.


A Seoul city official said, “After the election and Mayor Oh’s inauguration, rumors are spreading that many external figures who helped with the election (called old boys) will be brought in, and staff are tense.”



Another Seoul city official advised, “After 10 years, Mayor Oh has returned and has much to say and do, but now he is not a candidate but the mayor responsible for the lives of 10 million Seoul citizens, so he must be more cautious even when speaking.”


This content was produced with the assistance of AI translation services.

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