South Korea’s ‍President has withdrawn his nomination of Lee ​Hye-hoon to head the country’s newly created ‌Budget Ministry after she ​was accused of unlawful real estate investments and mistreating staff.

The plan to appoint the former conservative party lawmaker was viewed as an attempt by President Lee Jae Myung ​to promote national unity with some ⁠cross-party appointments. Mr. Lee’s liberal government was elected after his predecessor, Yoon Suk Yeol, was ousted last ​year following ⁠a brief imposition of martial law.

Woo Sang-ho, a Presidential secretary, said in a televised address on Sunday (January 25, 2026) ‌that Lee Hye-hoon had not ‌lived up to the people’s expectations.

At Ms. Lee’s confirmation hearing on ‍Friday (January 23), the three-term lawmaker argued that her family had not taken advantage ‍of the country’s apartment investment system, but agreed that she had often been out of line in how she had once treated her staff.

“I once again apologize to everyone hurt by my immature words and actions,” ,Ms. ⁠Lee said.

The Budget Ministry said its acting Vice Minister, ​Lim Ki-Keun, will lead policy meetings for ⁠the time being.

Mr. Woo said the search for a suitable candidate to lead the ministry could again involve people from the ⁠conservative party.