Mongolian Prime Minister Luvsannamsrain Oyun-Erdene resigned on Tuesday after losing a parliamentary confidence vote, capping weeks of mass protests fueled by corruption allegations tied to his son’s lavish spending.
Oyun-Erdene, who denied any wrongdoing, secured only 44 votes in the 126-seat legislature—far short of the 64 needed to retain power. Thirty-eight lawmakers voted against him in the secret ballot.
The controversy erupted after social media photos surfaced showing the prime minister’s son and his girlfriend flaunting luxury items, including a black Dior shoulder bag, during an engagement trip. One image, reportedly posted by the girlfriend with the caption "Happy birthday to me," circulated widely online and in local media, prompting scrutiny over how the family could afford such extravagance.
Mongolia’s anti-corruption agency had reportedly opened an investigation into the family’s finances.
For weeks, demonstrators—many of them young—flooded the streets of the capital, Ulaanbaatar, demanding Oyun-Erdene’s resignation over inequality, corruption, and rising living costs. Protesters argued that the country’s mineral wealth disproportionately benefits elites while many citizens remain in poverty.
In a statement after the vote, Oyun-Erdene said, "It was an honor to serve my country and people in times of difficulties, including pandemics, wars, and tariffs." He will remain in a caretaker role until a successor is appointed within 30 days.
Before the vote, the prime minister had warned that his ouster could destabilize Mongolia’s democracy, stating that political infighting might erode public trust in government. His Mongolian People’s Party (MPP) recently expelled the Democratic Party from the ruling coalition after some of its lawmakers supported calls for his resignation.
Transparency International’s Corruption Perceptions Index shows Mongolia’s ranking has worsened under Oyun-Erdene’s leadership, falling to 114th out of 180 countries in 2023. The country, a former Soviet satellite now wedged between Russia and China, has struggled with graft for decades.
Last year, U.S. prosecutors sought to seize two New York apartments owned by former Prime Minister Sukhbaatar Batbold, alleging they were purchased with embezzled mining funds. Batbold, who served from 2012 to 2015, denied the accusations.
In recent years, Mongolia has pursued closer ties with the West under its "third neighbor" policy, courting the U.S. and European nations to counterbalance its powerful neighbors. Yet domestic discontent over corruption and economic inequality continues to challenge its leadership.