Lee Hye-hoon, a former conservative lawmaker nominated as the first minister of the newly established Ministry of Planning and Budget under President Lee Jae-myung's administration, said she will pursue both economic growth and welfare without partisan considerations.
The appointment of Lee, a three-term National Assembly member from the People Power Party (PPP), is widely seen as an unconventional choice given her conservative background and her previous criticism of expansionary fiscal policies favored by the current government.
"I feel a heavy sense of responsibility," Lee said in a statement Wednesday following her nomination. "I deeply agree with President Lee's policy of not disadvantaging anyone based on political affiliation and appointing qualified candidates regardless of their background."
"Solving economic and livelihood issues requires cooperation beyond partisan or ideological lines," she added. "The Lee Jae-myung administration's goal of achieving both growth and welfare while ensuring sustainable growth aligns with my position. I will devote everything to reviving the economy and unifying the nation."
The Ministry of Planning and Budget, set to launch July 2, is a new agency under the Prime Minister's Office that will handle budget formulation and mid-to-long-term national development strategies. It was created by separating budget functions from the Ministry of Economy and Finance as part of a government reorganization.
Lee served as a lawmaker during the 17th, 18th, and 20th National Assemblies, representing conservative parties including the Grand National Party, Saenuri Party, and Bareun Party, where she served as party leader. She joined former President Yoon Suk-yeol's presidential campaign in September 2021 as chair of the National Future Strategy Committee.
She lost her bid for reelection in last year's general election as a PPP candidate in Seoul's Jung-gu and Seongdong-gu district. During this year's presidential election, she served as policy chief for PPP candidate Kim Moon-soo's campaign.
The appointment is also considered notable given Lee's regional background. Born in Busan in 1964, she graduated from Seoul National University's economics department and earned a doctorate in economics from the University of California, Los Angeles. With candidates from South Jeolla Province initially rumored for the position, her appointment from the Busan-Ulsan-South Gyeongsang region is seen as breaking from conventional regional considerations. Some interpret this as strategic balancing ahead of local elections scheduled for June next year.
Lee has historically advocated for fiscal soundness, contrasting with the current administration's emphasis on expansionary fiscal policy. During her tenure as Bareun Party leader in 2017, she strongly criticized the Moon Jae-in government's fiscal policies, saying "They have no intention of managing finances responsibly and are only churning out populist policies to win votes" and warning that "the government's endless populist policies will bankrupt the national treasury."
These past statements have raised concerns about potential conflicts with the current government's proactive fiscal approach.
Presidential spokesperson Lee Gyu-yeon addressed these concerns, saying "I don't think she was nominated without any communication or consultation with the president. She is regarded as a reasonable figure even within the opposition party, and I believe her reasonable and expert qualities were highly valued."
Meanwhile, the PPP strongly protested the nomination, criticizing Lee for failing to take minimal steps such as resigning from her party position or submitting a withdrawal notice beforehand. The party held an emergency supreme council meeting Wednesday and voted to expel her.
"With local elections only six months away, this is the worst act of betrayal against the people and party members in history," the PPP said. "She disrupted party order and deliberately obstructed party operations by continuing party activities, including conducting evaluations of elected officials, without disclosing her cabinet appointment."
