Seoul Mayor Oh Se-hoon criticized President Lee Jae-myung on Monday [1] for suggesting that housing prices in South Korea could crash.
The clash highlights a deepening divide between the municipal government of the capital and the national administration over real estate stability and supply strategies.
President Lee mentioned the possibility of a housing price collapse on Sunday [2]. According to Oh, the president cited early mass supply, the suppression of speculative demand, and a surge in loan defaults and auctions as the drivers of this potential crash [1].
Oh responded via Facebook on Aug. 31 [1], and said that the prediction of a crash is absurd. He said the president's reasoning reveals that he is still unable to properly see the reality of the real estate market, and the lives of ordinary citizens [1].
Regarding the government's supply plans, Oh argued that the administration lacks concrete schedules or execution plans. He said that if the president considers current announcements to be early mass supply, it is a great delusion [1].
This public rebuke follows a series of tensions regarding urban planning. Earlier this month, on Aug. 26, Oh held a briefing at the Seoul City Hall briefing room following a meeting with Minister Kim Yun-deok [3]. While the nature of that specific meeting focused on broader coordination, the current dispute over price stability marks a more direct confrontation between the two leaders.
Oh continued to argue that the factors the president relies on do not align with current market conditions [1]. He said that the government's goals are loud but lack the substance required to impact the market in the way the president suggests [1].
“The prediction of a housing price crash is absurd.”
This public disagreement signals a significant rift in how the national government and Seoul's municipal leadership perceive the health of the housing market. While the presidency appears to be preparing for a potential downturn driven by supply increases and high interest rates, the mayor of the nation's most critical real estate market views these assessments as disconnected from the ground reality, suggesting a lack of coordination in South Korea's overarching economic strategy.
