Seoul: President Lee Jae Myung has decided to withdraw his nomination for the role of budget minister, following rising controversy surrounding the nominee's personal issues, according to a statement by a presidential official on Sunday.

According to Yonhap News Agency, Lee Hye-hoon, a former three-term lawmaker from the opposition bloc, was initially nominated last month to head the newly established Ministry of Planning and Budget. However, her nomination was met with various accusations of wrongdoing, including suspicious real estate transactions involving her family and alleged mistreatment of subordinates.

Hong Ihk-pyo, the senior presidential secretary for political affairs, announced during a press briefing that President Lee made the decision after careful deliberation and reflection. He emphasized that the president had listened to opinions from multiple sectors of society and closely monitored the nominee's parliamentary confirmation hearing, along with public feedback.

The nomination was withdrawn as Lee Hye-hoon was deemed not to meet public standards for the budget minister role. President Lee aims to maintain national unity by appointing personnel from a wide political spectrum, ensuring transparency and accountability in the process.

The ruling Democratic Party (DP) expressed that the withdrawal demonstrated President Lee's commitment to upholding public standards and sentiments. DP spokesperson Park Hae-cheol stated that they would collaborate with the government to implement stricter and fairer criteria for appointing government officials.

Conversely, the main opposition People Power Party (PPP) criticized the decision, demanding an apology from President Lee for what they described as a flawed nomination process. PPP floor leader Song Eon-seok labeled the situation as a "clear disaster" and urged the president to apologize and revamp the personnel vetting system.

The controversy surrounding Lee Hye-hoon included allegations of manipulating the eligibility for purchasing a luxury apartment by listing her married son as unmarried, thereby increasing her family's chances of securing the property. Furthermore, accusations were made against her husband for engaging in real estate speculation near Incheon International Airport prior to its opening, and her previous support of a brief martial law imposition by former President Yoon Suk Yeol in December 2024 also drew criticism.