Seoul Mayor Oh Se-hoon has fired back at the Democratic Party of Korea’s acting leader and floor leader, Han Byung-do, over criticism that he was the “main instigator of real estate market chaos,” dismissing the accusations as “the pot calling the kettle black.” The exchange marks the latest escalation in a long-running political battle over who is responsible for South Korea’s housing supply crisis, particularly in the capital city.
War of Words Over Housing Supply
During the Democratic Party’s floor strategy meeting on August 7, Han Byung-do said: “Has everyone forgotten that during the Yoon Suk-yeol administration, the number of housing construction starts significantly decreased, and the construction of third-phase new cities was delayed, pushing back housing supply?” He also took direct aim at Mayor Oh, saying: “The main instigator who caused market chaos by lifting and re-designating land transaction permit zones last February has now turned to criticizing the government.”
Oh responded on the same day via Facebook, posting: “There is a limit to the pot calling the kettle black.” He added: “Do you think the public does not know who is responsible for the current real estate supply crisis?”
Mayor’s Counterattack: Blame Park Won-soon
Oh went further, redirecting responsibility to the Democratic Party’s own legacy. He asked: “Who was it that viewed redevelopment and reconstruction as ‘speculation’ and halted urban renewal projects?” He then answered his own question by pointing to former Seoul Mayor Park Won-soon, who served from 2011 to 2020 under the Democratic Party. According to Oh, it was Park’s administration that “undermined Seoul’s supply base.”
The mayor argued that during the Democratic Party’s ten years running Seoul City, a total of 389 redevelopment and reconstruction projects were canceled. This, he said, eliminated the opportunity to supply 430,000 households in Seoul. “The recent supply cliff is the result of not only drying up the seeds of supply but also spreading herbicide,” Oh wrote. “Trying to shift blame for this is beyond the pot calling the kettle black.”
These figures have been repeatedly cited by the conservative People Power Party, which Oh belongs to, as evidence that progressive local governments prioritized anti-speculation policies over actual housing delivery. Redevelopment and reconstruction projects in older urban neighborhoods have long been a politically sensitive issue in South Korea. While they can dramatically increase housing density and modernize aging buildings, they have also been criticized for displacing residents and fueling gentrification.
Contradictory Promises on Urban Renewal
Oh also expressed incredulity at what he described as the president and the Democratic Party’s claim that “redevelopment and reconstruction have weak supply effects and could lead to losses.” He noted on Facebook: “What is even more absurd is that the president and the Democratic Party are making the ridiculous claim that ‘redevelopment and reconstruction have weak supply effects and could lead to losses.’”
He challenged that position by pointing to the Democratic Party’s own candidate in the last Seoul mayoral election. That candidate, according to Oh, promised to “steadily push forward with urban renewal projects,” presenting pledges that he said “seemed to directly copy the Rapid Integrated Planning” – a reference to a fast-track approval system used by the Seoul Metropolitan Government under Oh to expedite housing development. The apparent contradiction, Oh suggested, shows that the Democratic Party is willing to embrace urban renewal when it is politically convenient but dismiss its effects when it is not.
Seoul City Data on Completed Projects
Seoul City provided data to support Oh’s claim that redevelopment and reconstruction produce meaningful housing supply. According to the city government, over the past three years, 59 completed urban renewal projects have increased the number of households by approximately 20,000. The increase is a direct result of redevelopment and reconstruction in those areas, which often replace older, low-rise buildings with higher-density apartment complexes.
Supporters of urban renewal argue that without a steady pipeline of new housing, Seoul’s already tight rental market will continue to push prices higher. They also note that approval processes for such projects have become more complex over time, making it even more important to begin them early. Critics, however, contend that many redevelopment projects are driven by developers’ profit motives and do not always benefit existing residents or the city as a whole.
Real Estate Normalization Debate
The political exchange over housing supply comes just one day after Oh hosted the “Citizen Grand Debate for Real Estate Normalization” at Seoul City Hall. At that event, held on August 6, Oh criticized the central government’s real estate policies, saying: “Isn’t the government’s real estate policy failing to control housing prices while only driving up jeonse and monthly rents?” Jeonse is South Korea’s unique system of large lump-sum deposits paid by tenants in lieu of monthly rent, and housing costs have become a top political issue in the country.
Oh further argued that if the government is serious about resolving the jeonse issue, it should increase supply by providing benefits to private rental providers. Instead, he claimed, the government is “suppressing financial and tax policies and pursuing hostile measures against them.” Those remarks were directed at the administration of President Yoon Suk-yeol, who is from the same party as Oh, but the mayor has shown he is willing to criticize his own side when it comes to housing policy.
In his Facebook post on August 7, Oh reiterated his call for the government and political parties to listen to the voices of citizens waiting for urban renewal projects and the earnest pleas from the field. He said: “Instead of merely trying to avoid public criticism, listen to the voices of citizens waiting for urban renewal projects and the earnest pleas from the field.”
Political Reactions
The war of words continued after Oh’s post. The People Power Party, which had been critical of the opposition’s stance on housing, issued its own statement saying, “They raised housing prices themselves and are now blaming the public for trying to control them.” This was a direct reference to the Democratic Party’s record in governing Seoul and its handling of real estate policy at the national level.
The Democratic Party responded by urging cooperation. In a statement, it said: “Cooperate with the government and the ruling party in processing the proposed housing supply legislation.” This suggests that the opposition is willing to engage in legislative action, but it also underscores the deep partisan divide over how to address the housing crisis.
South Korea’s housing market has experienced significant volatility in recent years. During the COVID-19 pandemic, home prices soared, particularly in Seoul and its surrounding areas, before a sharp downturn in 2022 and 2023 as interest rates rose. More recently, prices have shown signs of stabilization, but supply concerns remain acute. The government has announced multiple measures to increase housing supply, including new town developments and deregulation of construction, but critics say these moves are too late and insufficient.
The role of Seoul’s mayor in housing policy is especially important because the city government controls zoning, permits, and urban planning. Oh Se-hoon, who returned to office in a 2021 by-election after serving as mayor from 2006 to 2011, has made real estate supply a central pillar of his administration. He has repeatedly clashed with the central government, even as both sides are nominally conservative, over the pace and scope of new housing development.
Oh’s accusation about former Mayor Park Won-soon is not new. Park, who died in office in 2020, pursued a policy that emphasized public housing and tenant protections while tightening regulations on private redevelopment. His administration limited the maximum floor area ratio and imposed stricter requirements on reconstruction projects. These policies were popular among renters and progressives but were condemned by property owners and conservative politicians as a major cause of the housing shortage.
The 389 canceled projects figure cited by Oh has been challenged by the Democratic Party in previous debates. The party and its supporters argue that many of those projects were canceled or delayed due to legal disputes, lack of consensus among residents, or changing market conditions, not simply because of city government opposition. They also point out that the total number of housing units that would have been built through those projects is speculative, as not all approved projects end up being constructed.
Despite these disagreements, data from the Seoul Metropolitan Government shows that urban renewal projects have contributed to housing supply growth. The completion of 59 projects over the past three years, adding roughly 20,000 households, is a concrete example of how redevelopment and reconstruction can increase density. The projects often involve rebuilding older apartments and row houses into larger complexes, with the number of units in each project rising significantly after completion.
The political fight over housing is likely to intensify as South Korea prepares for future elections. Both major parties are aware of the public’s frustration over housing affordability, and each is eager to present itself as the true defender of supply expansion while blaming the other for past failures. Mayor Oh’s sharp words are a sign that he intends to make real estate policy a defining issue of his tenure and of the broader conservative campaign against the Democratic Party.
The Democratic Party’s call for cooperation on housing supply legislation indicates that even the opposition sees the need for action. However, the terms of that cooperation are unclear, and the party remains critical of what it views as the government’s failure to stabilize the market. For now, Seoul residents and others across the country are left watching a familiar pattern of political blame-shifting, with the hope that tangible results will eventually follow the rhetoric.
Source:MSN News