Leadership vacuum feared to undermine budget ministry's policy drive
The Lee Jae Myung administration’s ability to spearhead fiscal reform is facing a major setback, hamstrung by a leadership vacuum at the newly established Ministry of Planning and Budget, which is feared to lead to an overall delay in economic policy drives, market watchers said Monday. They say it could take at least one to two months for a new candidate to clear the National Assembly confirmation process, subsequently pushing back the government’s plan to frontload 75 percent of the state budget of over 727 trillion won ($505 billion) in the first half of this year. Central to the issue is former scandal-fraught minister nominee Lee Hye-hoon. President Lee withdrew the nomination late Sunday as allegations mounted, including workplace abuse, real estate speculation, preferential housing subscriptions and family-related advantages in education, university admissions and employment. Had the nomination been railroaded, the Lee administration would have been under constant pressure, since the compromised leadership and widespread backlash would have undermined functions of coordinatin
