The Tamesis
April 27, 2026
Seoul – Rising apartment prices in Seoul have made housing supply a decisive issue in the June 3 mayoral election, setting up a race between two candidates who both promise to speed up development but disagree on how much control the city government should exert in the process.
Incumbent Mayor Oh Se-hun of the main opposition People’s Power party is seeking a fifth term centered on deregulation and private-sector rebuilding.
His main challenger, Chung Won-oh of the ruling Democratic Party of Korea, also called for an increase in housing supply but said the city government should play a stronger role in overseeing reconstruction and redevelopment projects.
The campaign comes as apartment prices in Seoul have risen for more than 60 consecutive weeks, putting real estate at the forefront of voters’ minds in South Korea’s most expensive housing market.
Zheng, who recently resigned as mayor of Chengdong District, has a clear lead over Wu in major opinion polls.
Although the Democratic Party has enjoyed high approval ratings since the election of President Lee Jae-myung, the housing issue may still become a weakness for the Democratic Party.
A Gallup poll in February showed that only 26% of respondents approved of the government’s real estate policy, while 40% opposed it. Support rose to 51% in March, breaking the 50% mark for the first time, but the issue remains politically sensitive as prices continue to climb.
Ng’s housing plan focuses on building 310,000 homes by 2031 and 377,000 homes by 2035. The plan builds on one launched in 2021 when he began his third term as Seoul mayor and expanded in 2025, promising to accelerate the construction of large residential complexes through redevelopment and reconstruction.
About 63.8% of the planned housing will be built along the Han River, one of the most popular residential areas in the country. Oh also placed special emphasis on expanding supply in northern Seoul.
Central to Wu’s approach is deregulation. His plan includes reducing government approvals and approval steps for redevelopment projects, while offering incentives to developers and more compensation for tenants who are forced out.
Such incentives could include more lenient floor-to-area ratio rules for new apartment buildings.
Oh has repeatedly said Seoul’s housing shortage cannot be solved without private sector development. He said excessive government regulation has stifled supply and slowed projects that could help stabilize prices.
He also criticized Lee Myung-bak’s administration for imposing tighter loan restrictions on multi-home owners, a move aimed at curbing real estate speculation. Mr Oh argued that development projects in Seoul were interfered with by what he called “indiscriminate lending regulations” and urged Mr Chung to ask the president to repeal the policy.
The People’s Power Party supported Goh’s stance on Wednesday, saying it would work with Goh to pursue “innovative housing supply policies”.
Chung also supports accelerated development and increased housing supply, including through private sector participation. But his campaign believes speed alone is not enough and that City Hall must closely manage the process.
His proposal, tentatively named “Chak Chak Plan,” which roughly means “step-by-step plan,” would introduce a development manager system. Under this system, professionals will oversee reconstruction and redevelopment projects from the planning stages to breaking ground.
Chung proposed the idea as a way to increase metropolitan government accountability while reducing delays and confusion in the process.
He also plans to use real estate investment trusts to attract private capital into housing development. He said the model helps supply apartments at 70 to 80 per cent of market value.
REITs allow investors to own shares in income-producing real estate owned, operated or financed through the trust.
Under Chung’s plan, such lower-priced apartment towers would have fewer community amenities, while the public sector would share the financial burden of infrastructure.
He also proposed giving regional offices more authority to handle smaller developments of less than 500 homes. Mr Cheng plans to gradually expand the scale of projects that can be handled at the district level.
The contrast between the two candidates is not whether Seoul needs more housing, but who should steer the process. Wu is betting on deregulation and private sector momentum. Chung advocates faster development under tighter public management.
There is also a political dimension to this divide. Mr Chung, who belongs to the president’s party and received public praise from Lee Myung-bak in December, is expected to have a smoother working relationship with the Lee Myung-bak administration.
Wu’s attempt to frame the same relationship as a constraint suggests that Cheng will work to pursue housing policies that conflict with the president’s stance.
Both candidates also proposed housing support for economically disadvantaged groups. Mr Wu has pushed for an ongoing subsidy program for newlyweds buying their first home, while Mr Zheng wants to expand rental subsidies for students he introduced when he was mayor of Chengdong District.
As the race is increasingly viewed as a two-way contest between Wu and Zheng, the candidates have stepped up their attacks on housing policy.
Chung’s camp accused Mr Oh on Monday of misleading voters by suggesting Lee Myung-bak’s government would hinder Seoul’s development plans.
On the same day, Wu posted a message on Facebook asking Mr. Zheng if he agreed with Lee Jae-yong’s consideration of canceling the special deduction for long-term housing. This deduction is a tax benefit on capital gains made on the sale of a home when the seller has owned the property for at least three years.
Supporters of the possible change say it could increase housing supply by encouraging multifamily owners to sell properties they don’t live in. Critics argue this could have the opposite effect, prompting homeowners to delay sales in the hope of a policy reversal under a future government.
Pressed by Wu, Zheng said on Tuesday that the rights of people who own and live in single houses must be protected because they are not buying properties for speculative purposes.
Wu responded that Zheng did not directly oppose Li’s position but waited a full day to express his views. He believes Democratic candidates will be unable to advance policies that differ from the president’s.
With both candidates saying the city needs more housing, the fight will likely come down to a practical question for Seoul voters: Is the solution clearing the way for private redevelopment, or holding the city government more firmly in charge of how development progresses?
