Democratic Party criticizes People Power Party’s blame-shifting over Seoul surge
Jeon Hyun-heui, Senior Supreme Council Member of the Democratic Party of Korea, stated on the 19th regarding the recent surge in apartment prices in parts of Seoul and Gyeonggi Province, “This is attributable to the real estate policies implemented during the previous Yoon Suk-yeol administration.” Regarding the surge in Seoul apartment prices, he added, “The responsibility lies entirely with Mayor Oh Se-hoon, who is out of step with the government.” He continued, “The Lee Jae-myung government and the Democratic Party are acting as firefighters to extinguish this surge phenomenon,” and argued, “Criticizing this is a political ploy by the People Power Party to cover up their own mistakes.” Jeon, who is preparing to run for Seoul mayor in next year’s June 3 local elections, opposed calls within the party to strengthen property taxes, stating, “This is an amateurish policy.” He emphasized, “The Lee Jae-myung government and the Democratic Party maintain the position that using real estate taxation to coordinate real estate policy should be a last resort.”
Jeon held a press briefing at the National Assembly that morning and said, “The Seoul Metropolitan Government, which is out of step with the Lee Jae-myung government’s real estate policies, must cooperate with the government. Seoul citizens will not tolerate further discord,” as he made these remarks.
When asked, “The People Power Party criticizes the Lee Jae-myung government’s real estate measures as an expulsion order for Seoul and a real estate martial law,” Jeon responded, “This is an absurd claim and merely an attempt to obstruct the Lee Jae-myung government’s real estate policies,” and argued, “It is a strategy to shift blame and evade responsibility for causing the surge in Seoul’s real estate prices.”
Jeon stated, “Real estate does not show immediate effects, and the Lee Jae-myung government has only been in office for four months,” and added, “It is common sense that the current surge in real estate prices stems from policies implemented during the previous Yoon Suk-yeol administration.” He also said, “The Yoon Suk-yeol administration neglected real estate supply measures, and Mayor Oh Se-hoon’s unprincipled announcement to lift the land transaction permit system is widely known among Seoul citizens as the cause of the real estate surge.”
Jeon emphasized, “The current surge in Seoul’s real estate prices is entirely the responsibility of Mayor Oh Se-hoon, who is out of step with the government,” and warned, “If the city continues to clash with government policies due to political differences, the burden will fall entirely on citizens.” He urged, “The government and Seoul Metropolitan Government must work together to establish and implement measures to curb the surge,” and added, “Otherwise, the responsibility will fall entirely on the People Power Party and Mayor Oh Se-hoon.”
Regarding calls within the ruling party to increase property taxes on apartments and housing, Jeon argued, “The Lee Jae-myung government and the Democratic Party maintain the position that using real estate taxation to coordinate real estate policy should not be done and should be a last resort.” He personally stated, “I believe attempting to curb real estate surges through property taxes is an amateurish policy.” Jeon stressed, “The fundamental solution to prevent real estate surges is to supply high-quality housing at reasonable prices to meet housing demand.”
◇Jeon Hyun-heui Senior Supreme Council Member’s Remarks on Real Estate During Press Conference
Jeon Hyun-heui, Senior Supreme Council Member of the Democratic Party of Korea
To curb Seoul’s real estate surge, strong and efficient housing supply measures are necessary. In particular, the dreams of young people and non-homeowning citizens to own a home must not be crushed. Both the private and public sectors must join forces to expand housing supply in Seoul.
The success or failure of real estate policies ultimately depends on Seoul. The Seoul Metropolitan Government, which is out of step with the Lee Jae-myung government’s real estate policies, must cooperate with the government. Further discord between the government and Seoul will not be tolerated by citizens.
To expand youth housing supply, cooperation and policy discussions between the private and public sectors are essential. To expand private-sector housing supply, the government must strengthen institutional support. To resolve Seoul’s housing shortage, the private sector must actively participate in supply. Policy incentives, such as increased floor area ratios, must accompany private housing projects targeting actual homebuyers, the middle class, low-income citizens, and young people. It is urgent to secure infrastructure and living SOC facilities needed by citizens by realizing land donations and public contributions. Continuous efforts to identify underutilized public and state-owned land are also necessary. Government agencies must immediately consult with Seoul to expand private-sector supply.
To revitalize redevelopment and reconstruction, regulatory improvements — such as streamlining permits, combining redevelopment projects, and innovating maintenance projects — are required. In Seoul, where new land is scarce, revitalizing maintenance projects is unavoidable to expand supply for actual demand. There are concerns that the October 15 real estate measures may shrink redevelopment projects. Simplifying procedures and expanding incentives, such as floor area ratios, are essential. The Democratic Party will ensure the passage of an amendment to the Urban and Residential Environment Improvement Act during the current session to allow simultaneous processing of previously separate permit stages, including existing project plans and management disposition plans.
Mayor Oh Se-hoon’s real estate policy focuses on redevelopment in Gangnam and the Han River Belt. While revitalizing these areas is necessary, urgent action is required to activate redevelopment and reconstruction in neglected regions like northern Seoul. Through improved floor area ratio incentives, revitalized maintenance projects, proportional improvements, and bold regulatory reforms, innovative maintenance projects via combined redevelopment must be implemented in northern Seoul.
Youth housing supply must be drastically expanded as a national priority. Annual targets for youth housing supply across Seoul’s 25 autonomous districts should be set to accelerate progress. Long-term, stable rental housing for young people must also be expanded.
Institutional support must be strengthened to prevent recurring fraud in Mayor Oh’s “Youth Safe Rental Housing” program. I have proposed legislation to prevent youth rental fraud and will work to pass it swiftly. Customized financial and tax support, such as preferential loans, tax reductions, and brokerage fee assistance for young renters, should also be provided.
To enhance credibility, the metropolitan area’s supply should be detailed by autonomous district. While Gyeonggi Province accounts for most supply, Seoul remains the core. Through interagency cooperation, the proportion of housing for non-homeowning citizens and young people in Seoul must be significantly expanded. Detailed annual supply plans by autonomous district should be announced. Instead of vague announcements, a detailed supply map should be released to increase credibility and predictability.
A full survey of aging and underutilized public facilities and land must be conducted, and public and state-owned land should be continuously identified for housing supply. Incentives like increased floor area ratios should also improve the feasibility of developing aging public facilities.
LH and SH Corporations must take the lead in Seoul’s housing supply. Beyond passive planning, these agencies should independently construct housing in Seoul. All publicly owned land held by LH and SH must be allocated to housing supply. By mobilizing their land-acquisition capabilities, these agencies should rapidly supply affordable, high-quality housing to young people and non-homeowning citizens. The government and the Democratic Party pledge to make all-out efforts for this.
Reporter
Previously, real estate measures included precise plans like “supplying X units in Y district over Z years.” What differentiates the detailed plans you mentioned today?
Jeon
While the necessity of Seoul’s housing supply has been discussed, specific measures for expanding youth and non-homeowning citizen housing have not been presented. Today’s briefing reflects on the Cambodia incident, where desperate young people, unable to survive in South Korea, chose emigration as a last resort. If quality jobs and housing were available, such tragedies could have been prevented.
To supply quality housing to young people, the Seoul government and central government must stop conflicting policies. They should cooperate to present concrete alternatives. The private and public sectors must collaborate on a blueprint for Seoul’s housing supply. The government should drastically ease regulations on reconstruction and redevelopment hindering supply, survey underutilized public land, and secure sites for youth housing. LH and SH must move beyond passive roles, actively construct housing, and fulfill their public responsibility. This briefing urges such accountability.
Reporter
The People Power Party criticizes the Lee Jae-myung government’s real estate policy as a “Seoul expulsion order” and “real estate martial law.”
Jeon
This is an absurd claim and mere obstruction of the Lee Jae-myung government’s policies. It is a tactic to shift blame for causing Seoul’s real estate surge. Real estate effects are not immediate; the Lee Jae-myung government has only been in office for four months. The current surge stems from the previous Yoon Suk-yeol administration’s policies — a matter of common sense. The Yoon administration neglected supply measures, and Mayor Oh’s unprincipled lifting of the land transaction permit system caused the surge, as Seoul citizens well know.
Criticizing the Lee Jae-myung government and the Democratic Party, who are acting as firefighters, is a political ploy by the People Power Party to cover their mistakes.
