Annual Supply of 80,000 Housing Units in Seoul... "Funding Secured Through Expenditure Adjustment and Increased Tax Revenue" (Comprehensive)

Seoul Mayor Oh Se-hoon's Governance Master Plan 'Seoul Vision 2030' Announced
Target of 800,000 Housing Units by 2030
500,000 Units through Redevelopment and Reconstruction, 300,000 Rental Housing Units
Selective Welfare 'Seoul-type Citizen Safety Income' Pilot Project Starting Next Year
Establishment of 'Seoul Investment Agency' to Attract Foreign Investment Like Hong Kong and Singapore

[Asia Economy reporters Jinju Han and Hyemin Kim] Seoul Mayor Oh Se-hoon announced on the 15th that through deregulation of redevelopment and reconstruction and housing supply targeting youth, middle-aged, and elderly groups, 80,000 households will be supplied annually, totaling 800,000 households by 2030. Mayor Oh also stated that the ‘Seoul-type Citizen Safety Income,’ which supports half of the shortfall from the standard income, will be fully implemented starting in 2027. A ‘Seoul Investment Agency,’ dedicated to attracting overseas investments and supporting companies like the Hong Kong Investment Promotion Agency or the Singapore Economic Development Board, will be established within next year.

Mayor Oh announced the ‘Seoul Vision 2030,’ which includes these plans, and declared that by investing 48.6888 trillion won by 2030, Seoul’s international urban competitiveness will be raised from 17th to 5th place. Although this is the first master plan released since Mayor Oh took office, it can also be interpreted as a re-election pledge considering his term ends in April next year.

Regarding budget securing methods, Mayor Oh explained, "By restructuring expenditure such as curbing wasteful spending and increasing property tax rates, property tax revenue has doubled over three years. With this net increase in tax revenue, securing funds is possible." He added, "Next year, 1.89 trillion won will be required, and excluding expenditure restructuring and increased tax revenue, 750 billion won can be sufficiently managed by the Seoul Metropolitan Government."

Seoul Mayor Oh Se-hoon is giving a presentation at the 'Seoul Vision 2030 Announcement' held on the 15th in the main conference room of Seoul City Hall. Photo by Kang Jin-hyung aymsdream@

In the housing sector, 500,000 households will be supplied through redevelopment (260,000 households) and reconstruction (240,000 households). This target is considered achievable by lifting regulations such as abolishing the housing maintenance index and easing height restrictions. The average annual supply volume over 10 years is about 73,000 households. A Seoul city official said, "There are quite a few projects that have started development procedures but have not progressed due to regulatory or permit issues. We will listen to their opinions to enable rapid supply."

According to the Seoul Metropolitan Council, the volume delayed due to past permit issues is estimated at about 250,000 households. The market believes that solving this problem alone would make supplying 50,000 households annually not difficult. Professor Shim Gyo-eon of Konkuk University’s Department of Real Estate said, "There are many volumes blocked by permits, such as Jamsil Jugong Complex 5," and added, "This can be read as a signal to resolve such issues."

The remaining 300,000 households include ▲70,000 youth housing units for university students and early-career workers ▲170,000 long-term lease houses for newlyweds and couples raising children ▲60,000 Moa Houses (small-scale reconstruction) for residents of low-rise old houses.

The Seoul-type Citizen Safety Income will be piloted for three years starting next year to build a model and will be implemented from 2027. It is a representative model of Oh Se-hoon’s ‘selective welfare’ with a bottom-up approach instead of universal welfare. To secure youth jobs, 10 Youth Employment Academies will be established by 2030, and three ‘Campus Town Valleys’ will be created by linking Campus Towns and the Seoul Innovation Cluster. The ‘Career Transition Support Service’ will assist seniors aged 50 and above in career changes, and social contribution jobs will be expanded to 10,000 annually. Regulations on business environments will be eased by fostering 100 local brands and alleyway markets and allowing terrace operations in famous commercial areas such as Yeontral Park and Sharosugil.

Seoul Mayor Oh Se-hoon is giving a presentation at the 'Seoul Vision 2030 Announcement' held in the main conference room of Seoul City Hall on the 15th. Photo by Kang Jin-hyung aymsdream@

Regulatory reforms and infrastructure expansion to strengthen international urban competitiveness will also be pursued simultaneously. After its establishment next year, the Seoul Investment Agency will be converted into a public institution in 2024, and its fund size will be increased to 1 trillion won by 2030, developing it into a specialized investment attraction institution that attracts global unicorn companies. Seoul plans to expand unicorn companies (startups valued at over 1 trillion won) to 40 and create a 10 trillion won scale scale-up fund to nurture 2,500 startups.

The ‘Seoul Digital Finance Hub Center,’ supporting the attraction of overseas financial institutions, will be newly established by 2025, and the number of overseas financial institutions located in Seoul will be increased to 250. By 2030, a beauty industry cluster concentrating cosmetics companies, research institutes, beauty experience spaces, and Hallyu content will be built in Dongdaemun. The representative Seoul tourism festival ‘Seoul Festa’ will be held annually starting next year, aiming to increase the number of foreign tourists from 13.9 million in 2019 to 20 million by 2030. Additionally, four new growth innovation axes connecting Gangnam and Gangbuk will be created centered on growth hubs along the Han River.

Besides land routes, a smart three-dimensional transportation city utilizing air routes, waterways, and underground roads will be created. By 2030, 32 mobility hubs equipped with future transportation means such as autonomous vehicles and urban air mobility, logistics centers, and community facilities will be established. The Han River waterway will be restored to revitalize water tourism taxis and others. Plans to underground above-ground railway sections in Seoul in consultation with the Ministry of Land, Infrastructure and Transport and others will be pursued, along with structural improvements to underground main roads. Greenhouse gas emissions will be reduced by 40% by 2030 and net emissions will be zero by 2050.

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