Concerns Over Relocation Loan Regulations... Mayor Oh Se-hoon Says "The President Must Visit the Site"

Published 28 Jan.2026 13:39(KST)

"The President and Prime Minister Must Visit the Site and Listen to Residents' Voices"

As Seoul City continues to urge the government to ease loan regulations for residents relocating due to redevelopment projects, Mayor Oh Se-hoon has publicly called on the President and the Prime Minister to visit redevelopment sites in person.

Seoul Mayor Oh Se-hoon is overlooking the redevelopment project sites in Sinjeong 4 District and the area around 1152 Sinjeong-dong, Yangcheon-gu on Wednesday, the 28th. Provided by Seoul City.

On the 28th, Mayor Oh visited a redevelopment site in Sinjeong-dong, Yangcheon-gu, Seoul, where he stated, "This issue requires a decision from higher authorities, not just the Ministry of Land, Infrastructure and Transport," and earnestly appealed, "I sincerely ask the President or the Prime Minister to come to the site and listen directly to the residents' urgent voices."

On this day, Mayor Oh strongly criticized the government for its continued silence despite repeated requests from Seoul City. He said, "We have repeatedly asked the government to lift restrictions on relocation loans and the transfer of union member status," emphasizing, "At this point, government cooperation is more important than ever."

According to Seoul City, 39 out of 43 redevelopment zones in Seoul-about 31,000 households-are affected by loan regulations. This accounts for 91% of all project areas. Mayor Oh pointed out, "If relocations are delayed due to loan regulations, the entire redevelopment schedule will be disrupted, which inevitably leads to setbacks in housing supply."

He particularly argued that the government's lukewarm attitude stems from a structural negative perception of redevelopment projects. Mayor Oh said, "Officials at the Ministry of Land, Infrastructure and Transport are well aware that redevelopment is virtually the only means of supplying housing in cities like Seoul, where there is no available land," and added, "Nevertheless, since the Democratic Party has consistently pursued policies hostile to redevelopment, I believe the current situation is a continuation of that stance."

During the meeting, there was also criticism regarding the government's upcoming housing supply measures. Mayor Oh said, "Among the quantities announced by the Ministry of Land, Infrastructure and Transport, I believe there are virtually none that can be completed within the current administration's term," adding, "These projects take at least six to seven years at the earliest, and up to ten years. It is obvious what the more reasonable choice is."

He also added, "This decision is not just for Seoul City, but to support redevelopment sites and ultimately enable the rapid housing supply that the public is hoping for."

On this day, Mayor Oh visited both Sinjeong 4 District and the area around 1152 Sinjeong-dong, stating his intention to strengthen the public role of Seoul City by taking responsibility for the entire process-from designating redevelopment zones to management, relocation, and construction.

Sinjeong 4 District is a project where Seoul City applied its expedited integrated planning, and received approval for the management and disposal plan just one year and two months after project implementation approval in July 2024. Although the goal is to begin relocation in April and start construction in 2027, concerns are growing that the recently tightened relocation loan regulations may disrupt the relocation schedule.

The project in the area around 1152 Sinjeong-dong was also resumed through expedited integrated planning, but regulatory burdens remain the biggest variable. This area was designated as a redevelopment zone in 2012, but development was halted for over a decade due to low profitability.

In response, Mayor Oh explained, "Seoul City will mobilize all available resources to provide support," and added, "To improve the economic feasibility of redevelopment projects, we will lower the burden on residents by increasing the floor area ratio and applying business feasibility adjustment factors. In the case of Sinjeong 4 District, this is expected to reduce the per-household contribution by about 60 million won."