Lee Hye-hoon walks out of the confirmation hearing venue during the pause at the National Assembly on Friday. (Lee Sang-sub/The Korea Herald)
Lee Hye-hoon walks out of the confirmation hearing venue during the pause at the National Assembly on Friday. (Lee Sang-sub/The Korea Herald)

President Lee Jae Myung on Sunday withdrew his budget minister pick Lee Hye-hoon, two days after the long-awaited confirmation hearing failed to quell public concerns over personal allegations against her.

"After contemplation, (President Lee) has decided to withdraw his nomination of Lee Hye-hoon as the minister for planning and budget," Hong Ihk-pyo, senior presidential secretary for political affairs, said in a press briefing Sunday at Cheong Wa Dae in Seoul.

Attributing Lee's decision to the nominee's failure to meet public expectations for someone in public office, Hong said the president will continue to push for national unity by nominating conservative figures to key posts in his administration. Hong added that Lee made the decision to fully perform his responsibilities in nominating government officials.

With the withdrawal, Vice Minister Lim Ki-keun will continue to helm the new government body for the time being. This prompted People Power Party whip Rep. Song Eon-seog to call for an apology from Lee.

The liberal president picked the former three-term conservative lawmaker on Jan. 2 to head the newly established government body dedicated to national budget planning, which was carved out of the Ministry of Economy and Finance earlier this year.

At the time of the nomination, the ruling bloc hailed Lee's nomination of the conservative politician as a step toward national unity.

Hong Ihk-pyo, senior presidential secretary for political affairs, speaks to reporters in Cheong Wa Dae on Sunday. (Yonhap)
Hong Ihk-pyo, senior presidential secretary for political affairs, speaks to reporters in Cheong Wa Dae on Sunday. (Yonhap)

However, a string of allegations arose against the nominee, fanning negative sentiment against her. Allegations that have come to light since her nomination include irregularities in real estate deals that allowed her to accumulate personal wealth, as well as nepotism. She also faced allegations of workplace bullying targeted at her secretaries.

Lee Hye-hoon was accused of using inaccurate information to acquire a high-end apartment in Seoul in a presale deal in 2024 to gain wealth through unjust means.

The point of contention was whether her family had deliberately attempted to list her eldest son, who was married and had a house near his workplace in Sejong, as a dependent. In the housing competition, having many unmarried children is deemed an advantage.

During Friday's 15-hour confirmation hearing at the National Assembly, nominee Lee denied the allegations, citing her eldest son's failing marriage. Though the marriage problems were later resolved, Lee said her son had come to her house often because he needed help with house chores, and she therefore considered him a family member who did not separate.

Lee Hye-hoon has since been accused of fraud and illicit housing transactions, and her case is currently under police investigation. When asked if she was willing to sell the high-end house to take the minister post on Friday, Lee said she would do so if investigative authorities instructed her to.

Before the Friday hearing, the opposition party refused to convene an earlier hearing scheduled for Jan. 19, citing the nominee's failure to faithfully respond to lawmakers' inquiries about the allegations.

After the hearing, Song of People Power Party said on Facebook on Saturday, "If (Lee Hye-hoon's) explanation during the confirmation hearing is true, her life must be filled with miracles. If it is not true, her life must be filled with lies."


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