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Largest-ever Seoul City budget features higher public welfare spending, new landmarks

Published: 30 Oct. 2025, 16:20

Seoul Mayor Oh Se-hoon answers questions about the city’s real estate policies during a press briefing on the 2026 Seoul Metropolitan Government budget proposal at City Hall in Jung District, central Seoul, on the morning of Oct. 30. [NEWS1]

The Seoul Metropolitan Government announced Thursday a record 51.5 trillion won ($36.1 billion) budget proposal for next year — up 7 percent from this year’s 48.1 trillion won — marking the largest budget in the city’s history.

However, the city’s debt also grew due to the issuance of consumption coupons aimed at boosting the local economy. Seoul’s debt rose 314.3 billion won, or about 3 percent, from 11.3 trillion won in 2024 to 11.65 trillion won this year.

While the coupons added about 350 billion won in liabilities, the city offset part of that by reducing other debts by roughly 35 billion won compared to last year.

“Despite reducing about 600 billion won in debt over the past four years under a sound fiscal policy, debt is expected to increase this year due to the government’s consumption coupon program,” Seoul Mayor Oh Se-hoon said during a budget briefing Thursday.

Welfare and safety take center stage

The 2025 budget focuses on three key themes — solidarity, safety and charm. Of these, welfare spending aimed at supporting vulnerable groups will account for more than 30 percent of the total budget, rising 860.1 billion won year-on-year to 15.6 trillion won.

The city plans to expand basic livelihood support with 4.76 trillion won and strengthen its welfare network through programs such as emergency care with 36.1 billion won.

For a safer Seoul, the city will invest heavily in disaster prevention and urban infrastructure resilience, addressing risks like flooding, sinkholes and fires. Projects include renovating aging water and sewage systems for 447.7 billion won, replacing old heat pipelines using 6 billion won and upgrading subway lines No. 1 through 8 with 92.3 billion won.

A notice advertising monthly rental prices is posted at a real estate agency in Songpa District, southern Seoul, on Oct. 28, as monthly rent in the greater Seoul area climbs to its highest level in a decade following the government’s Oct. 15 housing policy measures. [NEWS1]

Investing in new landmarks and housing

Seoul will also fund major urban projects aimed at reshaping the city’s skyline. The plan includes 17 billion won for construction and activation of the Namsan Cable Car project, slated to open in 2027, 28.7 billion won for the Nodeul Island Global Arts Center and 21 billion won for the second Sejong Center for the Performing Arts.

To boost housing supply, the city allocated 1.06 trillion won to provide 24,000 public rental housing units for low-income households, young people and newlyweds.

Mayor Oh criticized the central government’s Oct. 15 housing policy package, arguing it could worsen market uncertainty rather than encourage supply.

“The government’s so-called 10.15 plan doesn’t promote housing supply — it makes buying, selling and even renting homes harder,” Oh said. “Our priority is to stabilize housing prices and relieve citizens’ anxiety through policies that promote practical supply.”

He added that the city would propose lowering the mandatory ratio of rental housing in redevelopment and reconstruction projects to make them more financially viable.

This photo shows apartment complexes in Apgujeong-dong, Gangnam District, as seen from Dalmaji Park in Seongdong District, Seoul, on May 26. [YONHAP]

“During a recent visit to Garibong-dong, an association representative earnestly asked whether we could reduce the required share of rental units due to poor profitability,” Oh said. “I told my team this morning to handle such cases flexibly.”

“Conditions are different now than when the market was booming and home prices were stable,” he added. “We’ll do what the city can within our authority and call on the Land Ministry to make legal adjustments if necessary.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HAN EUN-HWA [[email protected]]