South Korean President Lee Jae Myung has withdrawn the nomination of Lee Hye hoon to lead the country’s newly established budget ministry, following allegations involving improper real estate dealings and the mistreatment of staff.
The decision was announced Sunday by presidential secretary Woo Sang ho, marking an early setback for the new administration’s effort to form a broad based government that includes figures from across the political spectrum.
Lee Hye hoon, a three term lawmaker from the conservative camp, had been nominated as part of President Lee’s push for national reconciliation after his liberal government took office. The administration came to power after former president Yoon Suk Yeol was removed last year following a brief declaration of martial law.
At a televised briefing, Woo said the nominee had failed to meet public expectations. He did not provide further detail but confirmed the nomination had been formally withdrawn.
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During her confirmation hearing on Friday, Lee denied that her family had improperly benefited from South Korea’s apartment investment system. However, she acknowledged inappropriate conduct toward staff members during her earlier political career.
“I once again apologize to everyone hurt by my immature words and actions,” Lee said during the hearing, addressing lawmakers.
The accusations triggered public criticism and intensified scrutiny at a time when the new government has pledged stronger standards of integrity.
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The budget ministry said acting Vice Minister Lim Ki Keun will oversee policy meetings and daily operations until a permanent leader is appointed.
Woo said the presidential office remains open to selecting another candidate from the conservative party, signaling that the administration still intends to pursue cross party appointments despite the setback.
The withdrawal delays the full launch of the new budget ministry, a key institution intended to strengthen fiscal coordination under the current government. Officials have not given a timeline for announcing a replacement nominee.