Oh Sehoon: "October 15 Measures Excessive... Notified of Land Permit Zones Right Before Announcement" [2025 Audit]

Seoul Mayor Oh Sehoon pointed out that the government designated the entire city of Seoul and 12 regions in Gyeonggi Province as land transaction permit zones, but only notified the city right before the announcement, stating that there was not enough discussion on the matter.

Yonhap News Agency

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During the National Assembly Land, Infrastructure and Transport Committee's parliamentary audit held at Seoul City Hall on the 20th, Assemblywoman Kim Jungjae from the People Power Party asked Mayor Oh to evaluate the October 15 measures. Mayor Oh responded, "I believe the regulations are excessive." He added, "If there had been sufficient prior discussion, the Seoul Metropolitan Government would have liked to express its opinion. For example, if you look at the statistics over the past two to three years, there are areas where housing prices have not risen. Many of those areas are included in the current designation, which is why I described the measures as excessive."

Assemblywoman Kim Jungjae also criticized, "If I had to sum up these measures in one phrase, it would be an expulsion order from Seoul targeting low-income citizens without homes or money," adding, "Ordinary citizens who are genuine homebuyers usually purchase homes with loans, but all possible means and methods of obtaining loans have been completely blocked."

Mayor Oh, when asked about whether there had been any exchange of opinions at the working level or with those in charge regarding the designation of regulated zones, explained, "Regarding the designation of speculative overheating districts and areas subject to adjustment, we were asked for our opinion in writing two days before the announcement (on the 13th), and I replied that a cautious approach was desirable. However, before designating land transaction permit zones, we received a phone call just before the announcement. It was a unilateral notification."

The opposition party criticized the Ministry of Land, Infrastructure and Transport for conducting the process of gathering opinions on the designation of regulated areas as a mere formality. Assemblywoman Kim Heejeong of the People Power Party pointed out, "The city said, 'A careful decision is needed because homebuyers' opportunities will be reduced and anxiety among the homeless population will increase,' but not a single aspect of the city's opinion was reflected."

Assemblywoman Kim Heejeong questioned Kim Gyucheol, Director General for Housing and Land Policy at the Ministry of Land, Infrastructure and Transport, regarding the official response sent by the city to the ministry on the 14th, asking, "Did you really make such a decision in just one day, without requesting statistical data or any additional discussion?" In response, Director Kim said, "The law requires us to listen to opinions." She also asked Mayor Oh who holds the primary authority to designate land transaction permit zones, the Seoul mayor or the Minister of Land, Infrastructure and Transport, to which Mayor Oh replied, "Under current law, the authority to designate lies, in principle, with the heads of local governments."

Director Kim Gyucheol explained the recent measures by saying, "During the Moon Jaein administration, the process of designating regulated areas was carried out repeatedly and incrementally, which resulted in significant side effects such as the balloon effect. This time, we announced a comprehensive set of measures all at once to stabilize the market preemptively." He continued, "Regarding genuine homebuyers, if housing prices continue to surge as they are now and ordinary citizens are unable to purchase homes, it becomes difficult for them to own a home. Please understand that these measures are intended to support genuine homebuyers. Although there will be various inconveniences in the short term, ultimately, this will help stabilize the market. We will continue to implement supply measures to stabilize the housing market."

On this topic, Mayor Oh responded, "If we analyze the volume of housing supplied so far, more than 90% has come from the private sector. To stabilize the real estate market, ensuring sufficient supply means revitalizing the private market." He added, "By utilizing these principles-such as providing floor area ratio incentives, easing height restrictions, offering financial support, and establishing a housing promotion fund similar to those in Europe to provide appropriate funding when needed-we can implement policies that enable a large supply of housing, which is urgently needed at this time."

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