[Insight & Opinion] Lee Hyehoon's Appointment: From Pragmatism and Unity to Personal Transformation

The appointment of former People Power Party lawmaker Lee Hyehoon as Minister of Planning and Budget was the most eye-catching among the ministerial-level appointments in the Lee Jaemyung administration. By bringing back figures from the Blue House era, the administration could have signaled a new start with an image of inclusiveness and unity. The appointments, announced alongside former lawmaker Kim Sungsik, were both recognized experts in their respective economic fields, earning praise as merit-based selections that transcended political factions.

However, within the opposition party, Lee’s participation in the administration was denounced as a betrayal. Some within the ruling bloc also voiced opposition, claiming that it amounted to retaining those who had opposed impeachment and supported insurrection. Nevertheless, the shock effect of shaking up both the ruling and opposition parties was not necessarily negative. Yet, Lee’s appointment is gradually shifting from an image of inclusiveness, unity, and political disruption to one of personal transformation.

It was a surprising move because it is extremely rare for opposition figures to be appointed to key government positions. Moreover, with the People Power Party and the current administration locked in an almost warlike adversarial relationship, the participation of an opposition figure was unprecedented. This is why members of the People Power Party were particularly vocal in denouncing it as a betrayal. Lee herself emphasized, “The Ministry of Planning and Budget is not something you easily hand over to your adversaries. Entrusting me with such a critical ministry demonstrates the President’s sincerity,” highlighting her sense of the President’s genuine intent.

Another point of contention was whether the appointments of Lee, who has consistently criticized the Lee Jaemyung administration’s populism, and Kim, would translate into actual changes in economic policy. Lee has been a fierce critic of the President’s basic income and cash payment policies, labeling them as populist. The question was whether this signaled a shift toward a new pragmatic approach, or whether it was merely a one-off image strategy. Yoon Heesook, a former lawmaker and Lee’s junior in the economics field, criticized the appointment, saying that although Lee is an economist, she is not an expert in budgeting or fiscal policy, and thus was not the right person for the job.

In fact, aside from the appointments of Lee and Kim, recent government personnel decisions have shown little sign of a genuine commitment to pragmatism or unity. Looking at the composition of the Social Reform Committee, announced around the same time, nearly all members were progressive activists or experts, perhaps due to the committee’s focus on social reform. There has been no visible effort to set up a relationship between the ruling and opposition parties. Despite ongoing criticism of the administration’s tendency to appoint former bar exam classmates or lawyers involved in the Daejang-dong case to key political and government posts, President Lee has again appointed Kim Sungsik, a former bar exam classmate and member of his legal team during his tenure as Gyeonggi Province Governor, as president of the Korea Deposit Insurance Corporation.

Some within the ruling party have raised concerns about Lee’s past opposition to impeachment, but Lee herself has addressed this by presenting a complete transformation. Initially, it was reported that the Blue House was somewhat accepting of her past actions. “Such differences are part of the process of reaching consensus, and the differences themselves are not inherently wrong,” they said.

However, President Lee also added, “She must personally clarify her position and express her intention to break from the past.” In response, Lee apologized, saying, “At the time, I did not fully grasp the reality. Engaged in party politics, I became immersed in partisanship and lost sight of the essence of the issue and the crisis facing the national community.” The People Power Party, in a dramatic shift, has labeled her actions as “insurrection,” a term they rarely use. This is a personal transformation.

The appointment of Lee and others by President Lee was a surprising event. However, the initial image of pragmatism and unity that drew attention has faded. As her appointment has come to symbolize a personal transformation, the shock effect on the political landscape has also dissipated. The remaining question is whether she can bring about any changes to the Lee Jaemyung administration’s economic policy direction, which she has previously criticized as populist.

Kim Manheum, Former Chief of the National Assembly Legislative Research Office