Oh Mentioned Slowing Down Reconstruction... Coordinating Policies with the New Government

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Seoul Mayor Oh Se-hoon, who is running in the June 1 local elections, has officially mentioned the need to slow down redevelopment and reconstruction projects. This is interpreted as an effort to align policy with the new government, which is focusing on stabilizing housing prices under the leadership of Land, Infrastructure and Transport Minister nominee Won Hee-ryong.

According to Seoul city officials and industry sources on the 12th, Mayor Oh stated during his declaration to run for Seoul mayor the previous day that "some speed adjustment is necessary (in reconstruction and redevelopment)." He had previously said in interviews and on the radio, "For the time being, I intend to be cautious rather than focus on supply," and "We need to coordinate with the central government and implement timely, cautious policies to adjust the pace."

It is rare for Mayor Oh to directly use the term "speed adjustment." Even when the possibility of slowing down regulations on maintenance projects was mentioned after his election last year, he maintained a neutral stance by saying "be cautious yet swift, swift yet cautious." The reason for this change in Mayor Oh’s attitude is believed to be the signs of rising housing prices since March, especially in Seoul reconstruction sites and Yongsan, where the presidential office is located, following President Yoon Seok-youl’s election. Conscious of this, the new government has emphasized housing price stabilization, and Mayor Oh has aligned with this approach. It also appears that he is aware that his and the government’s stance could provoke backlash by stimulating housing prices ahead of the election.

It is also reported that the Presidential Transition Committee (Transition Committee) has been considering the issue of slowing down regulations on reconstruction and redevelopment. A source who participated in the Transition Committee said, "The housing price increase over the past 3-4 years is not solely due to supply shortages," adding, "It is the result of multiple factors such as ultra-low interest rates and rapidly loosened liquidity, but now the focus is only on supply." Mayor Oh evaluated, "During the election, it seemed like all regulations would be lifted, but since the Transition Committee, we have started to apply the brakes a little."

However, the "speed adjustment" mentioned by Mayor Oh is not expected to artificially delay the review of existing reconstruction sites. He emphasized that existing redevelopment and reconstruction projects "should proceed boldly and make progress." Ultimately, he is likely to focus on a phased approach to avoid signaling to the market that all regulations will be lifted at once, preventing a sudden surge of many reconstruction projects. He also hinted at expanding the designation of land transaction permission zones, which have been used to curb speculative forces.

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