Lee Hyehoon on First Day: "Korea's Economy Faces a Gray Rhino Crisis... Bold Investment Needed in Livelihoods and Growth"

Nominee for Minister of Planning and Budget to Take Office on January 2 Next Year
"High Inflation and Strong Dollar Are Burdening People's Livelihoods"
"Need to Link Planning and Budgeting with a Long-Term Vision"

Lee Hyehoon, nominee for Minister of Planning and Budget, stated on the 29th, "Our economy is currently in a perfect storm in the short term," adding, "We need to identify and eliminate unnecessary expenditures and boldly invest in people's livelihoods and growth." The term "perfect storm" refers to a phenomenon where individually weak typhoons or other natural events occur simultaneously, resulting in tremendous destructive power. In economic terms, it is commonly used to describe a severe global economic crisis.

Lee made these remarks while meeting with reporters on her first day at the confirmation hearing preparation office set up at the Korea Deposit Insurance Corporation in Dadong, Seoul. She emphasized, "Our economy and society are in a grave situation," adding, "We are facing a structural and complex crisis that is undermining our growth potential. The double burden of high inflation and a strong dollar is placing significant pressure on people's livelihoods."

She identified the five major structural issues facing the Korean economy as the population crisis, climate crisis, severe polarization, dramatic shifts in industry and technology, and the disappearance of local communities. She diagnosed the situation as a "gray rhino" scenario, not a sudden, unexpected 'black swan' event, but rather a critical threat that arises when well-known and long-warned risks are ignored and neglected.

Lee Hyehun, nominee for Minister of Planning and Budget, is greeting the press as he arrives at the confirmation hearing preparation office set up at the Korea Deposit Insurance Corporation in Jung-gu, Seoul on December 29, 2025. Photo by Kang Jinhyung

She continued, "I believe we need strategic thinking that looks further and longer than just short-term responses, and it is in this context that the Ministry of Planning was established," adding, "The Ministry of Planning serves as the control tower for strategic planning to shape the future of South Korea and is the agency that takes steps toward that future."

Lee explained, "We need a method that links planning and budgeting," emphasizing, "Rather than allocating budgets on an ad-hoc, short-term basis, we must link planning and budgeting with a forward-looking perspective." She further stressed, "We will transform the Ministry of Planning into an organization that looks further ahead, that is agile and nimble, that shares authority and increases participation, and that transparently releases its operations to the public."

Regarding the Lee Jaemyung administration's expansionary fiscal policy, she said, "I will address that at a later opportunity," refraining from specific comments. This appears to reflect her awareness of criticism that, as a mainstream economist who has emphasized fiscal soundness, she may not align with the administration's expansionary fiscal stance.

President Lee Jaemyung the previous day nominated Lee, a three-term lawmaker from the predecessors of the People Power Party-the Grand National Party, Saenuri Party, and United Future Party-as the first Minister of Planning. This nomination resolved concerns that the Ministry of Planning, set to launch on January 2 next year as part of a government reorganization, might start without a leader. However, due to the confirmation hearing and appointment procedures, it is expected that the ministry will operate without a minister in its initial phase.

Hyehoon Lee, People Power Party Seoul mayoral primary candidate. Photo by Dongju Yoon doso7@

Within government circles, the appointment is being described as an "unexpected and unconventional choice," as a non-presidential aide from the opposition was selected for a key budget control position. Previously, candidates such as Kim Kiguen, Second Vice Minister of the Ministry of Economy and Finance; Ando Geol, lawmaker from the Democratic Party; and Ryu Deokhyun, Fiscal Planning Advisor at the Presidential Office, had been considered, mainly from among bureaucrats and the ruling party. There had been widespread speculation that President Lee, who has emphasized the role of fiscal policy, would appoint a progressive figure as the inaugural head of the Ministry of Planning to implement expansionary fiscal measures.

The Presidential Office highlighted Lee's rationality and expertise, citing her experience as secretary of the National Assembly Special Committee on Budget and Accounts and as a research fellow at the Korea Development Institute (KDI) as reasons for her selection. The office stated, "She is well-versed in both policy and practice," and noted that "based on her philosophy of economic democratization, she has sponsored revisions to the Minimum Wage Act and the Interest Rate Limitation Act, and has promoted policies to eradicate unfair transactions and revitalize people's livelihoods."

Lee is a mainstream economist who has spent over 20 years in conservative politics. Born in Busan, she graduated from Masan Jeil Girls' High School and Seoul National University with a degree in economics, and earned her Ph.D. in economics from UCLA in the United States. Immediately after her nomination the previous day, Lee issued a separate statement, saying, "I deeply agree with President Lee Jaemyung's policy of not disadvantaging anyone for political reasons and appointing the right person regardless of their background," adding, "It has long been my conviction that solving economic and livelihood issues is something that should transcend political factions and ideologies, and that everyone must cooperate."