President Yoon Suk Yeol and Han Dong-hoon, leader of the ruling People Power Party, center, hold a meeting at the presidential office in Seoul, Monday. Courtesy of presidential office

The meeting between President Yoon Suk Yeol and ruling People Power Party (PPP) leader Han Dong-hoon ended Monday without any meaningful results, a setback that underscored a major divide between the two sides in resolving the first lady risk, according to political watchers, Tuesday.

Controversies surrounding first lady Kim Keon Hee have posed a significant challenge to the Yoon administration as she faces multiple allegations, including involvement in a stock manipulation scheme, acceptance of a luxury handbag from a Korean American pastor and interference in the PPP's candidate nominations ahead of the April 10 general elections.

Last week, the main opposition Democratic Party of Korea introduced its third bill mandating a special counsel investigation into the first lady after two previous bills were scrapped in a revote after President Yoon Suk Yeol vetoed them.

The new bill includes recent allegations that Kim solicited help from Myung Tae-kyun, a self-proclaimed political broker, to manipulate public opinion polls and exercise undue influence over the ruling party's candidate nominations for the 2022 by-elections and April's general elections.

During the meeting, Han urged Yoon to reshuffle personnel within the presidential office to alleviate public concerns, requested the first lady to refrain from public activities and recommended the appointment of a special inspector to look into allegations involving her.

Han reportedly identified around eight individuals at the presidential office who assist with the first lady's affairs that have influence over state matters, including personnel decisions, beyond their official duties and authority.

"If you (Han) provide specific information on who is causing problems and how, I will review the details and determine whether to take action," Yoon was quoted as saying by a senior presidential official, Tuesday.

Regarding the request for the first lady to stay out of the public eye, Yoon said, "She is already having fewer public appearances as she is upset about the backlash. Unless it's necessary, she won't engage in many external activities moving forward."

About the issue of cooperating with investigations into the allegations involving the first lady, Yoon said they should wait until the ongoing prosecution investigation is finalized, according to the official.

PPP chief vowed to listen to public feedback and resolve the challenges that lie ahead. "I will not avoid the problems, but resolve them in accordance to public sentiment," he told reporters, Tuesday.

The fruitless meeting hinted at the possibility of a growing rift within the ruling party.

The PPP's pro-Han faction expressed disappointment over stalled talks on the first lady and the seating arrangement at the meeting, which had been accompanied by presidential chief of staff Chung Jin-suk.

"There's clearly a perception gap between the ruling party and the presidential office in assessing the situation. President Yoon was about 25 minutes late to the meeting, but he just left Han standing outside waiting for him. The released photo also looks as if a school principal is lecturing a student," Kim Chong-hyuk, a member of the PPP's Supreme Council, said in a radio interview.

The PPP's pro-Yoon faction, on the other hand, said dialogue is based on trust. "As Yoon listened to Han's opinions, I hope Han also makes some efforts to restore trust with the president," PPP Rep. Kang Myoung-gu said in a radio interview.