President Lee Jae Myung has withdrawn the nomination of Lee Hye-hoon for the newly established Ministry of Planning and Budget amid controversies over her personal issues. The presidential office stated that she did not meet public standards following allegations of suspicious family real estate dealings and mistreatment of subordinates. Ruling and opposition parties have responded by stressing the need for stricter vetting processes.
On January 25, 2026, President Lee Jae Myung withdrew the nomination of Lee Hye-hoon, a former three-term lawmaker from the opposition bloc, for the newly established Ministry of Planning and Budget. The decision came amid growing controversies over her personal issues, including suspicious real estate dealings involving her family and allegations of mistreating subordinates. Senior presidential secretary for political affairs Hong Ihk-pyo announced the withdrawal during a press briefing, stating, "President Lee decided after deliberation and serious reflection to withdraw his nomination of Lee."
Hong noted that the president had carefully considered opinions from various sectors of society, reviewed her parliamentary confirmation hearing on Friday, and assessed public reactions since then. "Unfortunately, she did not meet the public's standards for the minister of planning and budget," he added, emphasizing the administration's commitment to national unity through cross-political appointments.
Key allegations include Lee securing a subscription right for a luxury apartment in southern Seoul in July 2024 by listing her eldest son—who had already held a wedding ceremony—as unmarried to inflate the number of dependents and improve her family's chances. Under South Korea's system for new apartments, rights are allocated based on factors like family size and homelessness duration. Further scrutiny arose over her husband's purchase of large land tracts near Incheon International Airport about a year before its 2001 opening, seen as speculation, and her past support for former President Yoon Suk Yeol's brief martial law imposition in December 2024.
The ruling Democratic Party praised the move, with spokesperson Park Hae-cheol saying, "The withdrawal reflects President Lee's consideration of the public's high standards and emotional sentiment." He pledged to work with the government on stricter, fairer appointment standards. In contrast, the main opposition People Power Party's floor leader Song Eon-seok demanded an apology on Facebook, calling it "a clear disaster and a failure of personnel vetting" and urging a complete overhaul of the system.
This episode highlights challenges in early personnel decisions for the new administration, likely sparking broader debates on vetting reforms in politics.
