SEOUL, August 30 (Reuters) – South Korea announced a sweeping cabinet reshuffle on Sunday, appointing First Vice Finance Minister Lee Hyoung‑il as deputy prime minister and minister of economy and finance.
The reshuffle also appointed Democratic Party lawmaker Kim Seung‑won as Minister of Justice and selected Kang Shin‑chul, a former deputy commander of the South Korea‑U.S. Combined Forces Command, as the new defense minister, according to a televised statement from presidential chief of staff Kang Hoon‑sik.
The cabinet reshuffle comes as President Lee Jae‑myung’s administration aims to restore its international policy momentum in the second year of his term, amid growing analyst concerns about the sustainability of his expansionary fiscal policies and a recent turmoil in the domestic bond market.
Lee Hyoung‑il, a career technocrat who has served as vice finance minister since June of the previous year, will inherit an economy that is heating up faster than anticipated and will collaborate with a central bank that is tightening monetary policy while the government prepares to increase fiscal spending.
The government is slated to present its 2027 budget next week.
In South Korea, cabinet nominees are required to undergo rigorous legislative scrutiny before the president can formally appoint them.
The president retains ultimate constitutional authority to appoint ministers, even if Parliament rejects them.
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