Political Blame Game Over Seoul Real Estate Surge
Jeon Hyun-heui, a senior member of the Democratic Party of Korea’s Supreme Council, recently made several pointed remarks about the recent surge in apartment prices in parts of Seoul and Gyeonggi Province. She attributed the situation to the real estate policies enacted during the previous Yoon Suk-yeol administration. According to her, the sharp rise in Seoul apartment prices is entirely the responsibility of Mayor Oh Se-hoon, who she claims has been out of step with the current government’s policies.
Jeon also criticized the People Power Party for its criticism of the Lee Jae-myung administration’s efforts to address the housing crisis, calling it a political ploy to cover up their own mistakes. She emphasized that the Lee Jae-myung administration and the Democratic Party are acting as firefighters, trying to extinguish the surge, while the opposition seeks to deflect blame.
Jeon is preparing to run for Seoul mayor in next year’s June 3 local elections. Regarding calls within the party to strengthen property taxes, she expressed strong opposition, calling such measures “half-baked policies.” She stressed that adjusting real estate policy through tax measures should only be a last resort.
During a press briefing at the National Assembly, Jeon stated that the Seoul Metropolitan Government, which has been out of sync with the Lee Jae-myung administration’s real estate policies, must cooperate with the government. She warned that further discord between the government and Seoul would not be tolerated by citizens.
When asked about the People Power Party’s criticism that the Lee Jae-myung administration’s real estate measures are a “Seoul expulsion order” and “real estate martial law,” Jeon dismissed it as “absurd” and an attempt to obstruct the administration’s policies. She argued that this was a strategy to deflect and evade responsibility for causing the real estate surge in Seoul.
Jeon explained that real estate does not respond immediately, and the Lee Jae-myung administration has only been in office for four months. She claimed that the current surge stems from policies under the previous Yoon Suk-yeol administration, which neglected supply measures. She also pointed to Mayor Oh Se-hoon’s unprincipled lifting of land transaction permit requirements as a key factor in the surge.
Jeon asserted that the current real estate surge in Seoul is entirely the responsibility of Mayor Oh Se-hoon. She warned that if the People Power Party and Mayor Oh continue to disrupt government policies due to political differences, citizens will bear the consequences. She urged the government and Seoul Metropolitan Government to jointly establish and implement measures to curb the surge, warning that otherwise, the People Power Party and Mayor Oh will be held fully accountable.
Regarding calls within the ruling party to raise property taxes on apartments and housing, Jeon reiterated that the Lee Jae-myung administration and the Democratic Party believe that using tax measures to adjust real estate policy should not be pursued and should only be a last resort. She personally criticized such proposals, calling them “half-baked policies.” Jeon stressed that the fundamental solution to curb real estate surges is to supply quality housing at reasonable prices to meet demand.
A Seoul Metropolitan Government official rebutted Jeon’s claims, stating that the primary cause of the recent sharp rise in housing prices is the government’s uncertain supply measures. The official added that the three rounds of government announcements have instead heightened anxiety about supply among buyers. He noted that Mayor Oh has been fully committed to redevelopment projects targeting 310,000 units by 2031, but the October 15 measures have slowed even Seoul’s redevelopment progress.
Key Points From Jeon Hyun-heui’s Remarks
- Housing Supply Measures: To curb Seoul’s real estate surge, strong and efficient housing supply measures are essential. The focus should be on ensuring that young people and non-homeowning citizens can achieve their dream of owning homes.
- Government Cooperation: The Seoul Metropolitan Government, which has been out of step with the Lee Jae-myung administration’s policies, must cooperate with the government. Further discord between the government and Seoul will not be tolerated by citizens.
- Private and Public Sector Collaboration: Expanding youth housing supply requires cooperation and policy discussions between the private and public sectors. The government must strengthen institutional support to boost private-sector housing supply.
- Regulatory Reforms: Revitalizing redevelopment and reconstruction requires regulatory reforms, including streamlined permits and combined redevelopment projects. In Seoul, where new land is scarce, activating redevelopment is unavoidable to meet demand.
- Youth Housing Expansion: Youth housing supply must be drastically expanded as a national priority. Clear annual targets for youth housing by district must be set, and long-term stable rental housing for young people should also be expanded.
- Preventing Fraud: Institutional oversight must be strengthened to prevent fraud in youth housing leases. Legislation to prevent such fraud is being proposed and will be expedited to protect young people.
- Public Land Utilization: A full inventory of aging and underutilized public facilities and land must be conducted to identify state-owned and idle sites for housing. Incentives like increased floor-area ratios should improve the viability of redeveloping aging public infrastructure.
- LH and SH Corporations: LH and SH Corporations must take the lead in Seoul’s housing supply. They should move beyond passive land sales to active construction, utilizing all public sites they own.
Addressing Criticism
When asked about the People Power Party’s criticism of the Lee Jae-myung administration’s measures, Jeon responded that such criticism is baseless and aimed at obstructing the administration’s policies. She emphasized that real estate effects are not immediate, and the Lee Jae-myung administration has only been in office for four months. She reiterated that the surge originated from the Yoon Suk-yeol administration’s policies, which ignored supply and allowed Mayor Oh’s unprincipled land policy. Criticizing the Lee Jae-myung administration’s firefighting efforts is a political stunt to cover past failures.
