Leader Steps Down at Launch... Prolonged Acting Leadership at Ministry of Planning and Budget

Lee Hyehoon, nominee for Minister of Planning and Budget, appeared at the Personnel Hearing of the Committee on Planning, Finance and Economy held at the National Assembly on the 23rd, submitting a written oath to Chairperson Im Ija. 2026.1.23 Photo by Kim Hyunmin

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On January 25, the Ministry of Planning and Budget stated that it would "steadfastly carry out its core work" following President Lee Jaemyung's decision to withdraw the nomination of Minister candidate Lee Hyehoon.

With Lee's withdrawal due to various allegations, including real estate speculation and fraudulent housing applications, a prolonged vacancy at the head of the ministry has become inevitable.

Through a press release issued that day, the ministry said, "All employees of the Ministry of Planning and Budget deeply recognize the gravity of fundamental structural reform and economic leap forward. We will steadfastly carry out our core work to ensure there are no setbacks in stabilizing people's livelihoods and implementing national policy tasks."

The ministry plans to hold an expanded executive meeting on the morning of January 26, presided over by Vice Minister Lim Kigeun, who is serving as acting minister, to review the progress of major work and discuss future plans.

That afternoon, President Lee Jaemyung abruptly withdrew Lee's nomination, stating, "Regrettably, as Minister of Planning and Budget for the government of national sovereignty, the nominee failed to meet the expectations of the public."

This decision came as public opinion sharply deteriorated after the personnel hearing, following a series of allegations: fraudulent housing applications at Banpo Raemian One Pentas, abuse of authority and verbal abuse toward aides, land speculation in Yeongjongdo, preferential treatment for the candidate's child in military service and employment, and, most recently, suspicions surrounding the eldest son's admission to Yonsei University.

The position of minister has remained vacant for 24 days since the ministry was separated from the Ministry of Economy and Finance and launched on January 2.

It will take at least three weeks, and possibly more than two months, for the president to select a new candidate, complete the personnel hearing process, and officially appoint a new minister.

There are concerns that if the vacancy at the top continues during the ministry's early days, key pending issues could be delayed one after another. It will be difficult to expect top-down momentum in core budget preparation processes, such as establishing budget guidelines and holding fiscal strategy meetings, and there is a high likelihood that internal personnel appointments will also be postponed.

Although Vice Minister Lim Kigeun has been serving as acting minister and focusing on practical work since the ministry's launch, he lacks the political leverage needed for expenditure restructuring and fiscal reform.

An official from the government pointed out, "As next year's budget process is about to begin in earnest, any delay in appointing a successor could lead to a loss of momentum in the early days of the administration, making it urgent to fill the vacancy."

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