0
Seoul Mayor Oh Se-hoon delivers a lecture at a seminar held for small business owners at Seoul City Hall on July 13. / Photo courtesy of Yonhap News Agency.

President Lee Jae-myung and Seoul Mayor Oh Se-hoon will face off over real estate solutions in their first official meeting since the June 3 local elections. While President Lee has put forward property tax reform as a central topic, Mayor Oh is set to propose a "Three Urgent Improvements" package focused on expanding housing supply and stabilizing the rental market. This policy debate over the priorities of taxation, supply, and loan regulations is expected to intensify ahead of the National Grand Debate on Real Estate Policy scheduled for July 23.

According to the Seoul Metropolitan Government and political sources on July 13, Mayor Oh will attend a Cabinet meeting hosted by President Lee on July 14, where he plans to deliver a separate document containing an assessment of the Seoul housing market and proposals for policy improvements. This marks his first attendance at a Cabinet meeting since the launch of the 9th elected local government, fulfilling his campaign pledge to establish a "Citizen-Representative Cabinet Meeting."

On July 10, President Lee proposed several agenda items for the real estate policy debate via X (formerly Twitter), including differential property taxation, criteria for ultra-luxury housing, and the relationship between property and transaction taxes. The government will host a series of public forums starting with the Ministry of Land, Infrastructure and Transport on July 14, followed by the Financial Services Commission on July 15, and the Ministry of Economy and Finance on July 16. The outcomes of these discussions will be integrated at the grand debate presided over by the President on July 23.

The Three Urgent Improvements prepared by Mayor Oh focus on normalizing redevelopment and reconstruction projects, vitalizing the supply of private rental housing, and preventing a sharp spike in real estate tax burdens. It is reported that he will also propose safety nets to prevent sudden tax increases for single-home owners.

However, it remains undecided whether Mayor Oh will directly present these improvement plans during the Cabinet meeting. As the Mayor of Seoul is not a cabinet minister, he can only voice opinions on state affairs by obtaining speaking rights from the President, who chairs the meeting.

"The core agenda of the grand debate must be supply and the stabilization of the rental market," Mayor Oh emphasized on Facebook. "In a situation where sales, Jeonse (lump-sum deposits), and monthly rents are rising simultaneously across the capital region—a 'triple increase'—we must first address the easing of regulations on redevelopment projects and effective supply measures rather than discussing tax burdens."

The People Power Party aligned with Mayor Oh's supply-centric approach. Chairperson Jang Dong-hyeok criticized the administration during a supreme council meeting, stating, "Reductions in mortgage loan limits are hurting young adults and actual homebuyers," adding that the upcoming forum risks becoming a "pre-determined debate that merely lectures the public."

Concurrently, contenders for the leadership of the Democratic Party joined the debate, offering contrasting solutions such as constructing housing on returned land from the U.S. military base in Yongsan and abolishing the comprehensive real estate tax. The discussions among the government and rival political parties are rapidly expanding into a broader ideological competition over tax overhauls, supply expansion, and financial support for young and actual homebuyers.

                                                                                                       Park Young-hoon