Seoul Permits Halved Since 2022, Mayor Oh Blames Park Won-Soon

Housing permits in Seoul fell by nearly half from 2022 to 2025, according to President Lee Jae-myung. The leader cited this sharp drop in construction starts as a primary driver of rising home prices.

Mayor Oh Se-hoon rejected this assessment at a Seoul City Hall session on September 21. He argued that the current supply crisis originated during the tenure of late Mayor Park Won-soon. Oh stated that 389 redevelopment sites were de-designated between 2012 and 2020. This removal from official maps eliminated a potential supply of 430,000 residential units.

Political blame shifts over housing supply

President Lee attributed the recent price surge to a decline in permits starting in 2022. He noted that construction activity halved during the period when Oh took office. The president suggested that local leadership decisions directly impacted national housing availability.

Oh countered that earlier administrative steps determine final permit outcomes. He emphasized that zone designation and association formation must occur before approval is possible. The mayor stated that criticizing current permit volumes ignores these foundational requirements. He described the presidential remarks as a failure to understand the regulatory process.

Regulatory barriers under previous administration

Oh accused the Park Won-soon administration of intentionally stalling redevelopment projects. He pointed to a 35-story height cap introduced during that period. This restriction caused many planned complexes to face prolonged delays in approval. Oh also noted that consent procedures expanded from one round to three.

The mayor argued that city officials induced conflicts within resident associations. This tactic facilitated de-designation when 30 percent of residents objected to projects. Oh dismissed government claims that most cancellations were voluntary as misleading. He described the administrative actions as deliberate attempts to hinder housing supply.

Central government safety rules criticized

Oh also targeted national regulations regarding structural safety reviews. He stated that the weighting for safety criteria rose from 20 percent to 50 percent. This change resulted in very few sites passing the necessary inspections. The mayor labeled this regulatory shift an obstacle to neighborhood redevelopment.

According to Seoul Economic Daily, Oh expressed frustration with central authorities blaming local leaders. He argued that strict safety standards created an impractical barrier for construction projects. The mayor maintained that these policies were designed to make redevelopment difficult. He called for a clear assignment of responsibility for the current supply gap.