Mongolia's Prime Minister Oyun-Erdene Luvsannamsrain bows after losing his position in a vote in Ulaanbaatar, capital city of Mongolia on June 3, 2025.

Oyun-Erdene Luvsannamsrain rose to power in 2021 by spearheading anti-corruption protests. Now, he has resigned following new protests accusing him of corruption, allegations he denies.

Oyun-Erdene’s government lost a confidence vote in parliament on Monday, according to a , failing to get the required 64 votes in the 126-seat parliament. The secret ballot saw only 82 lawmakers participate, with only 44 voting in favor of Oyun-Erdene.

“It was an honor to serve my country and people during challenging times, including pandemics, wars, and tariffs,” Oyun-Erdene stated after the vote.

Oyun-Erdene, whose center-left Mongolian People’s Party maintained its majority but still formed a with opposition parties following elections, will remain as caretaker Prime Minister until a replacement is appointed within 30 days.

His resignation, spurred by public anger over his family’s perceived extravagant spending, highlights the ongoing battle against corruption in the Asian nation.

The landlocked country, situated between China and Russia, has been a victim of exploitative practices by business elites, while a significant portion of its 3.5 million citizens live in poverty.

The no-confidence vote effectively dissolves the coalition government, although the Mongolian People’s Party is expected to be able to form a new government.

Oyun-Erdene explained to that he established the coalition government to address Mongolia’s stagnation caused by excessive politicization. He stated, “As a child, I had hopes for my country’s development, and there were projects discussed then that remain stagnant due to political divisions.”

Here’s what to know.

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What were the accusations?

This year, anti-government protests initially began as . However, the Prime Minister faced renewed criticism in May due to a controversy involving his 23-year-old son, Temuulen. Asia-Pacific commentary outlet reported that Temuulen was recalled from his studies at Harvard University “due to corruption investigations.” Social media posts alleging Temuulen gifted his fiancée luxurious presents—including, according to , “helicopter rides, an expensive ring, designer handbags and a luxury car”—sparked public outrage.

The protest group launched a petition, garnering over signatures, demanding Oyun-Erdene’s resignation, citing his son’s lavish spending as just one reason. The petition also mentioned inflation, rising prices, increasing unemployment, and poverty.

Protesters also demanded that Oyun-Erdene disclose his financial records.

How did Oyun-Erdene respond?

Oyun-Erdene’s office has largely dismissed the allegations of financial misconduct as a “smear” and “completely unfounded.” In a statement to CNN, the office affirmed that the Prime Minister “makes regular financial declarations annually in line with Mongolian law.”

After facing calls for his resignation in May, the Prime Minister publicly defended his son in local media. Bolor Lkhaajav, a researcher for , reported that Oyun-Erdene’s son had not requested financial assistance from his father and that Mongolia’s Anti-Corruption Agency was investigating the matter. Oyun-Erdene even reportedly offered to resign immediately if the agency discovered any irregularities in his financial statements.

Prior to the confidence vote, Oyun-Erdene cautioned that a change in government could jeopardize Mongolia’s fragile democracy, which began in the early 1990s after the collapse of the Soviet Union. “If governance becomes unstable, the economic situation deteriorates, and political parties cannot come to consensus, it could lead the public to lose faith in parliamentary rule and potentially put our democratic parliamentary system at risk of collapse,” the Prime Minister . While defending his actions, he admitted to “dedicating too much time to major projects while paying insufficient attention to social and internal political matters.”

How bad is corruption in Mongolia?

Mongolia is ranked 114 out of 180 countries and territories in Transparency International’s .

The describes corruption, particularly within the mining sector, as “endemic in Mongolia” and notes that it is widely perceived to “have worsened in recent years.” According to Freedom House, the country’s anti-corruption laws “are vaguely written and infrequently enforced,” and anti-corruption bodies have been “criticized as ineffective in pursuing cases.”

In 2024, the forfeiture of two luxury apartments in New York City belonging to former Prime Minister Batbold Sükhbaatar after they were found to have been acquired with the proceeds of “unlawfully awarded Mongolian mining contracts.” In 2022, a involving the illegal transport of minerals across the Chinese border shook Mongolia, implicating high-ranking officials and business leaders and resulting in an estimated $12 billion loss to the economy.

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