Lee delays decision on controversial budget minister nominee

President Lee Jae Myung speaks at a New Year’s press conference held at Cheong Wa Dae in Seoul, Wednesday. Yonhap

President Lee Jae Myung said Wednesday that he is not yet prepared to withdraw his controversial nomination of Lee Hye-hoon for the key post of budget minister, despite a cascading series of ethical scandals and a breakdown in the parliamentary confirmation process.

Speaking at his New Year’s press conference at Cheong Wa Dae, the president said the controversy surrounding the nomination last month of the conservative-leaning politician ended up far more contentious than he had anticipated, adding that he had not expected to encounter such fierce resistance.

The standoff has become a major test of Lee’s pragmatic governing strategy. The liberal president tapped Lee Hye-hoon — a veteran economist and three-term former lawmaker from the conservative opposition — to lead the newly created Ministry of Planning and Budget.

The nomination was framed as a historic attempt at bipartisanship, but it has since been eclipsed by various allegations, including mistreatment of her aides and allegations her family members engaged in fraudulent housing applications to secure a luxury apartment in southern Seoul’s affluent Gangnam District.

Lee expressed regret that the confirmation hearing for the nominee failed to happen, saying he had hoped to hear directly from her and allow the public to form its own judgment through the parliamentary process.

“I wanted to have an opportunity to hear her side publicly and make a decision after seeing how the people judged it, but even that opportunity has been blocked. It is unfortunate for her, but I am also very disappointed,” the president said.

He said that reaching a decision based solely on one side’s claims would be unfair, and that he would wait for more information before coming to a conclusion.

President Lee Jae Myung takes questions from reporters at a New Year’s press conference at Cheong Wa Dae in Seoul, Wednesday. Yonhap

Lee acknowledged criticism of the presidential office’s vetting process for the nomination but defended its review, saying it was difficult to verify allegations such as the mistreatment of aides.

“How would we know whether she abused her staff or not?” he said, adding that she had been nominated five times by the conservative camp, elected to the National Assembly three times and had faced no issues up until the nomination.

He said her selection was intended not as a symbolic gesture but as a substantive effort at inclusive governance.

“Integration should not be just words. It means sharing opportunities and governing together,” Lee said, noting that conservative values play an important role in certain areas of the economy.

Later in the day, the ruling and opposition parties tentatively agreed to hold a confirmation hearing for the budget minister nominee on Friday, provided she submits the documents requested by the main opposition People Power Party (PPP).

A hearing originally scheduled for Monday was canceled after the PPP announced a boycott, citing the nominee’s failure to provide sufficient materials.

President Lee Jae Myung takes questions from reporters at a New Year’s press conference at Cheong Wa Dae in Seoul, Wednesday. Yonhap

Turning to other issues, Lee issued strong warnings against religious organizations' involvement in politics, calling recent allegations of collusion between some religious groups and politicians “a path to national ruin.”

“Once religious belief merges with political preference, there is no room for compromise,” he said. “This is extremely dangerous and must be eradicated.”

Citing media reports, Lee said there were indications that Shincheonji Church of Jesus, a controversial religious group, has been politically active in the country since the early 2000s and that the Unification Church has also been involved in political activities.

“While organized efforts were rare in the past, the situation has worsened recently,” the president said. “Some Protestant groups are now openly and systematically intervening in politics. In some sermons, they even say, ‘Lee Jae Myung must die for the country to survive.’ This is very serious.”

President Lee Jae Myung speaks at a New Year’s press conference at Cheong Wa Dae in Seoul, Wednesday. Yonhap

Lee underscored that the principle of separation of church and state must never be violated and that strict legal punishment is necessary.

“I usually do not like making punitive laws and do not think it is desirable, but in this case people don't seem to realize how bad and dangerous this is. They treat it as if it were a right. Individuals may have political preferences and religious beliefs, but using the religious system itself for political means is absolutely not permissible,” he said.

Wednesday’s New Year’s press conference marked the president’s first official briefing, inviting both local and foreign media, since relocating the presidential office back to Cheong Wa Dae.