Cheong Wa Dae on Friday demanded an apology from President-elect Yoon Suk-yeol's transition team for accusing the outgoing administration of interfering with the appointment of a new CEO of Daewoo Shipbuilding & Marine Engineering (DSME).

Park Soo-hyun, senior secretary for public communication, told TBS radio the Moon Jae-in government "has never been involved in personnel appointments of private companies."

On Thursday, transition committee deputy spokesperson Won Il-hee said the team will ask the state auditor to look into the appointment of Park Doo-sun, a friend of Moon's younger brother, as CEO of the DSME, which is under government control.

Won denounced the appointment as "irrational" and "shameless."

Park struck back, describing Won's remarks as "insulting," and demanded the transition team should "politely apologize."

Park said the transition team threw "cold water" on efforts by Moon and Yoon to ensure smooth transition.

The DSME is considered a quasi-public firm based on its ownership structure. The shipbuilder's largest shareholder is the Korea Development Bank, which is run by the government.