Nomination and ministry creation draw bipartisan attention President Lee Jae Myung announced former three‑term conservative lawmaker Lee Hye‑hoon as the nominee to head the newly established Ministry of Planning and Budget, which will sit under the prime minister’s office as part of a government reorganization set to take effect in January 2026[1][2][5].

Past support for Yoon’s failed martial‑law bid fuels criticism Lee Hye‑hoon publicly backed former President Yoon Suk‑yeol’s aborted martial‑law attempt, prompting her to issue an apology on Dec 30, acknowledging the action would be a constitutional wrongdoing and that she had not grasped its gravity at the time[2][3].

Cross‑party backlash prompts presidential demand for clarification Both the ruling Democratic Party and the opposition People Power Party condemned the nomination; the president’s office urged Lee Hye‑hoon to clarify her earlier remarks and sever any ties to those views, while the opposition even removed her from a party chair position in Seoul[4][1].

Cabinet reshuffle, return to Cheong Wa Dae, and economic optimism The announcement coincided with a cabinet meeting marking the administration’s return to the historic Cheong Wa Dae complex, where President Lee emphasized national unity and cited upbeat export and foreign‑investment figures as signs of economic recovery[1][5].