Mongolia's Prime Minister Luvsannamsrai Oyun-Erdene has stepped down after losing parliamentary support following corruption claims that erupted into street protests last month, the country's parliament said.

The parliament of the world's largest landlocked country did not pass a draft resolution on a confidence ballot, meaning Oyun-Erdene was deemed to have resigned, a parliament statement said on Tuesday.

"It was an honour to serve my country and people in difficult times, including pandemics, wars, and tariffs," Oyun-Erdene said after the result of the vote was known.

Oyun-Erdene, who has been prime minister since January 2021 and was re-elected in July 2024, will remain caretaker prime minister until a successor is named within 30 days.

The political upheaval comes after Mongolians last month protested for weeks in the capital Ulaanbaatar alleging corruption involving Oyun-Erdene and his family.

Oyun-Erdene did not immediate respond to requests for comment on his resignation and the corruption allegations.

Helicopter-rides, expensive ring, designer handbags and luxury car

Demonstrations erupted in the capital Ulaanbaatar on May 14 after viral social media footage revealed what appeared to be an opulent lifestyle led by Oyun-Erdene's 23-year-old son.

The videos featured scenes of a grand engagement proposal involving helicopter rides, costly jewelry, high-end handbags and a luxury vehicle, sparking outrage and questions over how such wealth was obtained.

The prime minister, who built his political image on humble, rural beginnings, faced growing scrutiny as many Mongolians struggled with surging inflation, a steep cost of living and worsening air pollution in Ulaanbaatar — a city that houses nearly half the country's population.

For nearly two weeks, demonstrators gathered daily at Sukhbaatar Square outside the Government Palace, demanding Oyun-Erdene disclose his financial records and step down from office.

Although Mongolia has operated as a parliamentary democracy since its 1991 revolution, political instability has been a recurring theme, with frequent changes in leadership and collapsing coalitions.

A statement posted on the Mongolian parliament website showed Oyun-Erdene thanking the country's youth for their views on transparency, and citizens for their different perspectives, but said he "regrets that this is used as a political pretext and causing instability".