South Korea names veteran technocrat Lee Hyoung-il as new finance chief in cabinet reshuffle

Seoul: South Korea unveiled ​a major cabinet reshuffle on ​Sunday, naming First Vice Finance Minister Lee ​Hyoung-il as the new deputy prime minister and minister of economy and finance.

The administration also tapped ruling Democratic Party lawmaker ‌Kim Seung-won ⁠to lead ⁠the Ministry of Justice, and named Kang Shin-chul, former deputy commander of the South Korea-U.S. Combined Forces Command, as the new defense minister, presidential chief of staff Kang Hoon-sik said in a televised address.

The reshuffle of the cabinet comes as President Lee Jae Myung's ⁠administration seeks ‌to revitalize its international policy momentum as it enters its second year, at a ⁠time when analysts are questioning the sustainability of his expansionary fiscal policies amid a rout in the local bond market.


Lee Hyoung-il, a career technocrat who has held the vice finance minister position since June last year, inherits an economy running hotter than expected and will be working ‌with a central bank that is now tightening policy as the government is expected to boost fiscal spending for ⁠the year ahead.

The government is expected to roll out its 2027 budget next week.

In South Korea, cabinet nominees ​must face strict legislative scrutiny before they can formally be appointed by the president.

The president retains the ultimate constitutional authority to appoint his ministers, even if parliament votes them down.