Rival parties agree to confirmation hearing for budget minister nominee Lee Hye-hoon

South Korea's ruling Democratic Party and opposition People Power Party agreed Thursday to hold a confirmation hearing Friday for Lee Hye-hoon, President Lee Jae Myung's nominee for the new Ministry of Planning and Budget, after weeks of delays over incomplete documents and allegations against her.

The agreement came after the hearing, initially set for Monday, was postponed when the People Power Party (PPP) objected to incomplete documents submitted by Lee during a Strategy and Finance Committee plenary. Committee chair Rep. Lim Lee-ja (PPP) suspended the session, prompting further talks that led to Thursday's deal—conditioned on Lee providing the requested materials.

Nominated by President Lee on December 28, 2025, as the inaugural minister for the Ministry of Planning and Budget (launching under the prime minister's office in January 2026), the former three-term conservative lawmaker has faced bipartisan criticism. The opposition demands her withdrawal over her husband's real estate dealings and claims of mistreating subordinates and an intern during her parliamentary tenure.

This resolves weeks of partisan wrangling, advancing the vetting process amid Seoul's political tensions. The hearing remains non-binding, as the president can appoint her regardless.

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President Lee Jae-myung nominates ex-lawmaker Lee Hye-hoon as inaugural Minister of Planning and Budget at a press conference.
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President Lee nominates ex-lawmaker Lee Hye-hoon for budget planning minister

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President Lee Jae Myung nominated former three-term conservative lawmaker Lee Hye-hoon as the inaugural minister for the new Ministry of Planning and Budget on December 28, 2025. The nominee described the economy as facing a structural crisis and short-term 'perfect storm' the next day, pledging bold budgetary investments to support livelihoods. The ministry, set to launch in January under the prime minister's office, will handle budget allocation and mid- to long-term economic strategies.

President Lee Jae Myung has withdrawn the nomination of Lee Hye-hoon for the newly established Ministry of Planning and Budget amid controversies over her personal issues.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.

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Lee Hye-hoon, President Lee Jae Myung's nominee for the new Ministry of Planning and Budget, apologized Tuesday for her past support of former President Yoon Suk Yeol's failed martial law declaration. The move followed presidential instructions to clarify her stance, as she heads into a parliamentary confirmation hearing.

President Lee Jae-myung met with leaders from the ruling Democratic Party and minor parties at Cheong Wa Dae on Friday for a 90-minute luncheon. He urged bipartisan cooperation to resolve issues including a massive data breach at Coupang Inc., financial troubles at Homeplus Co., and a labor dispute at GM Korea Co. The main opposition People Power Party leader did not attend.

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A former Unification Church official involved in a corruption case from former President Yoon Suk Yeol's administration is expected to name Democratic Party (DP) lawmakers during his final trial on Wednesday. Yun Young-ho faces charges for providing luxury gifts to Yoon's wife, Kim Keon Hee, in 2022, and claims church ties to the DP during Moon Jae-in's presidency. The disclosure could severely impact the DP and President Lee Jae Myung's administration.

In a policy address at the National Assembly, Han Byung-do, floor leader of the ruling Democratic Party of Korea, pledged to end former President Yoon Suk Yeol's martial law crisis and advance sweeping judicial reforms. He highlighted restoring people's livelihoods as the utmost priority of the Lee Jae Myung administration.

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South Korea's Defense Ministry plans to convene a disciplinary committee meeting on Friday to decide on actions against eight general-level officers involved in former President Yoon Suk Yeol's botched martial law bid. The meeting comes amid efforts to revamp the military following the December 3, 2024, attempt that led to suspensions across the armed forces. Spokesperson Chung Binna stated that the decision considers ongoing investigations and the need for personnel stability.

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