Seoul City Pushes Back Against Ministry's Housing Plan, Demands "Private-Led Supply" (Comprehensive)

Criticism of the Government's 60,000-Unit Supply Plan
"Additional 27,000 Units Possible Through Redevelopment and Reconstruction"
"October 15 Measures Must Be Deregulated"

Kim Yoonduk, Minister of Land, Infrastructure and Transport, is holding a joint briefing on housing supply promotion at the Government Seoul Office in Jongno-gu, Seoul on January 29, 2026. Photo by Jo Yongjun

On January 29, the Ministry of Land, Infrastructure and Transport announced a plan to supply 32,000 new housing units in Seoul, prompting an immediate backlash from the Seoul Metropolitan Government.

Kim Seongbo, Second Vice Mayor for Administrative Affairs, held a briefing at Seoul City Hall at 2 p.m. that day, stating, "We express deep concern that the announced plan excludes even the minimum prerequisites proposed by the city."

"Private Sector Supply Must Come First"

Vice Mayor Kim explained, "Over 90% of housing supply in Seoul has been sustained by the private sector, and in particular, apartments preferred by citizens are mainly supplied through redevelopment projects, which accounted for 64% of all apartment supply last year alone." He pointed out that the cancellation of redevelopment zones and the suspension of new zone designations in 2010 severed the housing supply pipeline, leading to a supply cliff crisis, with a sharp decline in supply expected over the next four years starting this year.

He went on to criticize, "The measures we proposed during working-level discussions with the government to revitalize private redevelopment projects were not reflected in the government's plan. The government has once again announced a plan with significant limitations."

Disagreement Over Yongsan International Business District and Taereung Country Club Sites

The Seoul Metropolitan Government specifically raised concerns about the Yongsan International Business District and the Taereung Country Club sites. The city expressed its disagreement with both the housing supply volume for the Yongsan International Business District and the development of the Taereung Country Club site, but these concerns were not reflected in the government's announcement.

For the Yongsan International Business District, the city insisted on maintaining an appropriate residential ratio of up to 40% to ensure a high-quality residential environment, while the Ministry of Land, Infrastructure and Transport announced a plan to supply 10,000 housing units. The Seoul Metropolitan Government stated that it would consider a maximum of 8,000 units.

Choi Jinseok, Head of Housing Policy at the Seoul Metropolitan Government, added, "For 10,000 units, a method for securing school sites is necessary, but this was announced without full consultation. The urban development plan has already been completed, and it will not be easy to resolve the infrastructure issues."

Regarding the Taereung Country Club site, where the ministry announced a plan to supply 6,800 housing units, the city believes the supply effect will be minimal. In particular, since redevelopment and reconstruction in the surrounding aging urban areas such as Sanggye and Junggye could provide an additional 27,000 units, the city believes that supply through private redevelopment projects should be prioritized. Choi explained, "There are various issues, including environmental concerns, resident complaints, and transportation."

"Immediate Resolution of the Supply Cliff Is Impossible"

The Seoul Metropolitan Government emphasized, "Excluding the four sites currently being promoted by the city, construction could begin as early as 2029 at the earliest, making it impossible to immediately resolve the supply cliff."

The city also argued, "The core of the plan should be to ensure that the private sector, which is responsible for most of Seoul's housing supply, can supply housing more smoothly. If only the regulations introduced by the October 15 measures are eased, relocation in ongoing redevelopment projects would be possible, and supply could be secured more quickly than through the government's plan."

The city added, "We hope that today's policy announcement is not the end. We strongly urge that the root causes of instability in the housing market be addressed and that effective follow-up policies reflecting voices from the field be discussed."

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