President Lee Jae-myung on the 25th withdrew the nomination of Lee Hye-hoon as Minister of the Ministry of Planning and Budget. Lee, who had been named as the inaugural Minister of the Ministry of Planning and Budget, failed to dispel a series of allegations and was forced to step down a month after being nominated.
Hong Ik-pyo, senior presidential secretary for political affairs at the Blue House, said at a briefing that day, "The president decided to withdraw the nominee's designation after much deliberation and consideration." Hong said, "The president listened to a wide range of views from all sectors of society regarding the nominee and carefully reviewed the confirmation hearing and subsequent public assessments," adding, "Regrettably, the nominee did not meet the public's expectations as Minister of the Ministry of Planning and Budget in a government of popular sovereignty."
Hong added, "Integration can bear fruit as a grand unity along with changes that transcend factional logic," and "The president's deliberation and efforts to reaffirm the meaning and value of grand unity through an integrated appointment will continue."
When asked by reporters, "What is the reason for withdrawing the nomination rather than the nominee voluntarily resigning," Hong said, "Whether it is voluntary resignation or withdrawal of nomination depends on the situation at the time," and added, "In this case, because the president brought in a person from the conservative camp, even withdrawing the nomination was the personnel authority holder taking responsibility."
Nominee Lee Hye-hoon was engulfed in various allegations, including abuse and verbal abuse of aides, speculation in Yeongjongdo, an illicit application for a high-priced apartment in Banpo worth tens of billions of won, and preferential treatment for children in military service and employment. Most recently, fresh allegations emerged of a "grandfather and father chance" surrounding the eldest son's admission to Yonsei University.
The president had expressed a resolve to uphold the purpose of "integration" by appointing a conservative figure, but ultimately withdrew the nomination amid repeated allegations.
The Ministry of Planning and Budget is expected to experience some confusion in pushing ahead with policies due to the nominee's fall. If the leadership vacuum is prolonged in the early stages after launch, minister-level decisions and political coordination will be delayed, inevitably stalling major pending issues one after another. In preparations for core budget work such as budget guideline setting and the fiscal strategy meeting, it will also be difficult to expect top-down momentum at the minister level. Major personnel moves within the ministry may also be delayed.