Lee's budget minister pick sparks cross-party ire

Lee Hye-hoon, nominee for minister of the Planning and Budget Office, steps out of a car in Seoul on Monday on her way to a temporary office set up to prepare for her confirmation hearing. (Yonhap)

President Lee Jae Myung’s nomination for budget minister has sparked controversy across party lines, as the pick comes from a former conservative lawmaker who had long criticized the president’s welfare-driven economic policies.

On Sunday, the presidential office announced the nomination of Lee Hye-hoon to head the Planning and Budget Office. Presidential spokesperson Lee Kyu-yeon said the nominee was selected for her policy expertise and practical experience, adding that the nomination would strengthen “both political integration and economic pragmatism.”

Lee, an economic specialist and former lawmaker of the main opposition People Power Party, had until recently been a strong critic of President Lee’s economic agenda, including his signature basic income proposal and welfare expansion, describing it as populist.

Following the announcement, however, the nominee said in a written statement that the Lee Jae Myung administration’s policy goal of achieving both welfare and sustainable growth, “fully aligns with my own position.”

The nomination immediately drew backlash from the main opposition People Power Party, which accused Lee Hye-hoon of betraying the party and stripped her of party membership and posts the same day.

“She betrayed the public and party members just six months ahead of local elections by agreeing to serve as a Cabinet member and assisting the current administration,” the People Power Party said in a statement.

Speaking to reporters on Monday, Rep. Jang Dong-hyeok, chair of the People Power Party, confirmed her expulsion, saying that stern measures are needed against "those who betray the party and hurt party members.”

According to party officials, Lee Hye-hoon did not inform the party at any point during the vetting process, which typically lasts about a month, until the official announcement. During that time, she served as a district committee chair responsible for reviewing candidates for next year’s local elections.

Lee, a former research fellow at the Korea Development Institute, began her political career within the conservative bloc in 2002. She was elected to the National Assembly three times under the bloc’s predecessor parties, including the Grand National Party and the Saenuri Party. She later joined former President Yoon Suk Yeol’s primary campaign in the 2022 presidential election and worked for former Labor Minister Kim Moon-soo, the party’s candidate in the June 3 presidential election.

Rep. Joo Jin-woo of the People Power Party accused her of “wearing a mask until the very end,” saying she had benefited from the party by presenting herself as a conservative loyalist, only to accept a post in the Lee Jae Myung government. He vowed to pursue a strict verification process during her confirmation hearing.

The People Power Party also framed the nomination as a political maneuver, arguing that President Lee sought to blunt criticism of his expansionary fiscal policy by placing a former opposition figure at the forefront of budget management.

In a statement released Monday, Rep. Park Sung-hoon, a senior spokesperson of the People Power Party, said, “This decision is neither cooperation nor integration with the opposition,” arguing that it was a calculated move to later claim political cover by pointing to the participation of a former opposition figure.

The nomination also drew mixed reactions from the ruling Democratic Party of Korea.

While the ruling party officially welcomed the nomination, saying that the move shows the president's centrist approach to personnel decisions, many Democratic Party figures raised concerns over her past political actions, particularly her defense of former President Yoon Suk Yeol.

During impeachment proceedings that followed Yoon’s martial law declaration on Dec. 3, 2024, Lee Hye-hoon took part in street rallies criticizing the Democratic Party, arguing that the impeachment process itself was illegal.

Democratic Party Rep. Yoon Jun-byeong said, “Entrusting the nation’s finances to someone who had shouted ‘ringleader of insurrection’ at President Lee while supporting Yoon amounts to a breach of the Lee administration’s governing principles rather than an act of political inclusion.”

Democratic Party Supreme Council member Lee Un-ju also questioned whether figures who defended martial law could reasonably be considered part of the administration’s push for political unity.

Nonetheless, the presidential office defended the nomination, saying Lee Hye-hoon was selected for political diversity “that would result in fresh and reasonable policies by narrowing differences in views,” presidential spokesperson Kang Yu-jung said.

Asked about Lee Hye-hoon’s past support for former President Yoon, Kang added, “That is something the nominee herself will need to address.”

On Monday, on her way to a temporary office in Seoul set up to prepare for her confirmation hearing, Lee Hye-hoon vowed to eliminate unnecessary spending while making bold investments in livelihoods and growth. She added that South Korea faces a structural crisis threatening its growth potential.

The Planning and Budget Office is set to officially launch on Jan. 2, 2026, under the Lee Jae Myung administration’s government reorganization plan, which was announced in September after passing the National Assembly.

Lee Hye-hoon’s YouTube channel, Facebook page and personal blog have been taken down.

“This appears to be an attempt to erase her past criticism of President Lee and traces of previous activities supporting former President Yoon ahead of the confirmation hearing,” a People Power Party official said, speaking on condition of anonymity.

This marks the second time President Lee has nominated a former conservative lawmaker to a Cabinet post, following the appointment of Kwon Oh-eul as minister of veterans affairs in June.