President Lee, Mayor Oh clash over housing policy at State Council meeting

A sharp disagreement erupted between South Korean President Lee Jae-myung and Seoul Mayor Oh Se-hoon during a State Council meeting on August 18, 2026, concerning housing supply strategies. The conflict centered on the utilization of the Yongsan Park area and the further deregulation of green belts.

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Even 'all-out supply' has its principles. Once lost, urban green spaces are difficult to recreate.

The government signaled its intent to proceed with its housing plans by passing a motion at the State Council to exempt public housing development sites from the total cap on green belt deregulation. President Lee presided over the meeting, which also included discussions on civil defense.

Following the meeting, Mayor Oh expressed his opposition to housing development in the Yongsan Park area via Facebook. He argued that Seoul, with its limited mountainous terrain, already has a low per capita park area of 5.7 square meters. "Sacrificing the share that future generations must enjoy for the immediate need for additional housing supply will ultimately sacrifice the lives of future generations," Oh stated, adding that "even 'all-out supply' has its principles" and that "once lost, urban green spaces are difficult to recreate."

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Sacrificing the share that future generations must enjoy for the immediate need for additional housing supply will ultimately sacrifice the lives of future generations.

Mayor Oh also urged the government to ease regulations on redevelopment and reconstruction projects, highlighting remaining hurdles such as restrictions on transferring 조합원 (union member) status, zoning ratios, and the proportion of public rental housing. He also requested a review of the government's overall real estate policy, including property taxes and owner-occupancy regulations.

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The President asked in detail whether the permit authority for large-scale redevelopment, reconstruction, and small-scale individual construction projects lies with the district office or the city government, and whether there are deregulation measures to increase private supply.

President Lee, in response, questioned Mayor Oh about the specific approval authorities for private housing supply initiatives, inquiring whether they rested with district offices or the city government. He also commented that while deregulation should be pursued to increase supply, it should not increase the likelihood of housing prices skyrocketing. Lee emphasized the need for flexibility in accepting legitimate policy critiques while resisting attempts to destabilize policy direction. The government's approved measure to exempt green belt areas within projects like the Taereung golf course and Gwacheon Racecourse aims to expedite development.

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We must have the flexibility to accept legitimate policy critiques, but we must not be swayed by attempts to destabilize policy.