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After being re-established following 18 years, the Ministry of Planning and Budget encountered a significant crisis on its very first day. A controversy emerged when recordings alleging misuse of power and verbal abuse by Lee Hye-hoon, a former legislator appointed as the first minister under President Lee Jae-myung’s administration, were continuously made public, sparking worries about the new ministry’s stability. Concerns and criticism regarding the nominee are also beginning to surface within the ruling Democratic Party of Korea and the presidential office.

◇”Unexpected events happening one after another”… Delays in company reorganization

As reported by officials from relevant ministries on the 4th, the Planning and Budget Office is facing delays in its organizational restructuring and system setup because of the controversy involving the nominee. A government representative from the office stated, “We are in a state of shock as unexpected events continue to occur one after another.”

This scenario goes beyond a personal ethical matter, highlighting worries about the decline in support for President Lee Jae-myung’s economic initiatives. Whether the appointment proceeds or the candidate steps down, financial management uncertainty has increased.

The Office of Planning and Budget, which handles budget development and long-term national strategy, is in charge of more than just financial planning; it also guides the direction and results of national policies. Its leadership plays a crucial role as discussions on major livelihood assistance programs and deficit bonds are expected to arise before the June local elections.

A representative from an economic ministry, who wished to remain unidentified, stated, “It’s confusing that such a matter emerged before the new organization had even taken its initial steps. The ministry’s stability is essential, but the nominee may need to make a major decision soon.”

◇ Worries about a ‘rubber-stamp minister’ if the appointment continues… Exit limits choices

The head of state retains the ability to proceed with the nominee’s confirmation, considering the pressing need to tackle the economic crisis and the legal authority that permits the president to appoint without requiring legislative approval.

Nevertheless, opponents claim that a minister involved in moral disputes would find it difficult to serve as the budget oversight figure. This is particularly relevant considering the nominee’s removal from the People Power Party, her previous party, which would probably make her ability to negotiate with the opposition party almost nonexistent.

Government officials are concerned that even if confirmed, the nominee could act as a “rubber-stamp minister,” simply carrying out directives from the presidential office to allocate money, instead of formulating independent policy choices.

If the candidate steps down because of public disapproval or her nomination is canceled, the Lee Jae-myung administration is likely to explore choices including naming a conventional economic official, a liberal economic specialist, or a different conservative economic representative.

Professor Shin Yul from the Department of Political Science and Diplomacy at Myongji University stated, “The political pressures are too significant to proceed with the appointment at this time. While identifying another solution is not out of the question, President Lee’s choices will naturally become more limited.”