Seoul, Government Clash Over Housing Supply Plans

Despite presenting a united front on expanding housing supply, the South Korean central government and Seoul City authorities are experiencing significant clashes over crucial policy details. Disagreements are intensifying regarding the scale of housing development in Yongsan, the potential release of Green Belt land, and strategies for redevelopment and reconstruction projects, leading to concerns about prolonged stalemate and blame-shifting.

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The expression that it feels like state violence watching the holding tax and capital gains tax increase significantly resonated with me.

Seoul Mayor Oh Se-hoon publicly criticized the government's real estate tax reform package, announced just three days prior, as "state violence." He argued that the measures, intended to stabilize housing prices, might instead lead to increased rents without effectively controlling market fluctuations. This strong reaction came after a meeting with Kim Yong-beom, the presidential policy chief, highlighting the deep rift between the two entities responsible for addressing Seoul's housing challenges.

The conflict is particularly sharp over the Yongsan development. While Seoul City initially planned 6,000 housing units for the Yongsan Maintenance Area, the government proposed increasing this to 10,000 units, aiming for greater supply expansion. Seoul City, however, maintains that 8,000 units is the maximum feasible, arguing that a larger scale would compromise the area's identity as a strategic zone for international business and strain infrastructure like schools and transportation.

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It's absolutely unthinkable.

Further friction exists over Green Belt (development-restricted zone) policy. Mayor Oh has stated a firm opposition to releasing more Green Belt land, citing environmental concerns, uncertain short-term effects, and the potential for speculation. This stance contrasts with the government's consideration of areas like the Yeogok-dong reserve forces training site in Seocho-gu. The city's position also draws scrutiny given Mayor Oh's previous approval of Green Belt release for the Seoripul district development in 2024, which he then described as a measure for future generations.

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We cannot release the Green Belt, no matter what.