Lee administration sidelines Seoul mayor in housing push

The government and ruling party are drawing speculation that they are sidelining Seoul Mayor Oh Se-hoon in their push to expand housing supply.

Housing demand is most concentrated in the nation’s capital due to the heavy concentration of population, jobs and urban conveniences, making the Seoul mayor a key local government partner in the central government's bid to address housing supply.

But Cheong Wa Dae, the Cabinet and the ruling Democratic Party of Korea (DPK) appear to be finding ways to bypass Oh rather than consulting him on housing supply policies for Seoul.

The speculation was reinforced when presidential chief of staff Kang Hoon-sik, Prime Minister Han Seong-sook and DPK Chairman Kim Min-seok agreed, Sunday, to push granting district chiefs authority over redevelopment and reconstruction projects involving 500 homes or fewer.

Such authority is currently held by heads of metropolitan or provincial governments, including the Seoul mayor.

Under the law on urban development, Seoul’s district chiefs can draw up redevelopment plans but must seek the mayor’s approval for the designation of redevelopment zones, meaning the proposed change would allow them to proceed without going through Oh.

The political implications are particularly sensitive because the proposal has been sought by DPK-affiliated district chiefs.

The DPK controls 17 of Seoul’s 25 district chief posts following the June 3 local elections, compared with eight held by the main opposition People Power Party, to which Oh belongs.

Questions over whether Oh is being sidelined also surfaced during a Cabinet meeting on July 14, when he was denied an opportunity to discuss housing policy during his first in-person encounter with President Lee Jae Myung since the local elections.

Both the president and the prime minister both cut off Oh as he attempted to speak on the issue, prompting the mayor to hold a separate briefing at Seoul City Hall that afternoon to present the housing policies he had intended to discuss.

“It makes sense to say that the Lee Jae Myung administration is trying to work around Oh on housing policy,” said a real estate expert, who asked not to be named. “The transfer of redevelopment authority would significantly weaken Oh’s influence over smaller projects, giving DPK-led districts greater room to move ahead on their own.”

Political and real estate observers say Yongsan Park could become a bigger test of Oh’s influence.

The central government has been reviewing whether parts of the vast former U.S. military base site in central Seoul could be used for housing as it looks to increase supply in the city. Land Minister Kim Yun-duk said last week that limited development was being considered for portions of the site that have already lost their function as green spaces.

Oh has strongly opposed building homes within Yongsan Park, saying Seoul cannot accept a plan to develop the park itself for apartments. Oh and Kim recently met over the issue but failed to narrow their differences.

“Under the circumstances, the Seoul mayor would have more limited control over Yongsan than over ordinary redevelopment projects in the city,” the real estate expert said.

He pointed to the Special Act on the Creation of Yongsan Park, noting that it gives the central government the leading role in planning and managing the site.

The act requires the central government to establish comprehensive policies for the Yongsan Park development zone, while requiring the Seoul mayor to cooperate with procedures carried out under the law.

It also takes precedence over other laws in matters concerning the park and surrounding development zones.