The Seoul city government has released its "Special Bill on New Towns." The idea is to develop the North-of-the-River neighborhoods with national government aid and build new 86,000 homes, at an increase of 18,000 homes. The Ministry of Construction and Transportation is already opposed to the plan.
We have no desire to take sides, but we do think the city is going beyond its bounds as a non-national government body to on its own release a legislative bill when it does not have the authority propose legislation and without having discussed it with the responsible ministry. That kind of publicity is essentially a declaration of war, a direct challenge to the national government. What will the country look like if every local government starts ignoring their authority and the proper procedures? The city needs to be even more careful when there has been expression of conflict between Seoul mayor Lee Myung Bak and the national government. Lee is a potential candidate for president, all the more reason he should avoid making it look like he wants to use issues relating to the people's welfare for political goals. Even without this there is deepening discord between socioeconomic classes over what to do with real estate policy. You cannot call someone a responsible leader if he is encouraging confrontation.
One wonders whether the city has carefully considered what negative side effects there would be if it builds "new towns" simultaneously. Even Seoul's North-of-the-River neighborhoods could become overtaken by speculative investment since the market is overflowing with low-interest cash. It almost looks like the city is trying to maintain balance in a situation where South-of-the-River housing prices are skyrocketing, but that is way off the mark if that is what the goal is. You have to start by discouraging speculative investment. Nowhere does one see any plan about what to do for the renters who will lose their homes.
It is a positive thing to have Seoul saying it is going to stabilize housing prices. But implying that it is better than the national government at that is not helpful. The national government, for its part, needs to engage in self-reflection and ask itself if maybe the conflict has occurred as a result of its habit of disregarding Lee's views for being a member of the opposition party. It is the people who suffer the consequences when local and national government bodies fight over who is in charge. Both sides need to resolve the conflict and work together to stabilize housing prices.
The Hankyoreh, 23 June 2005.
[Translations by Seoul Selection (PMS)]
Fighting While Housing Prices On The Loose |
