South Korea unveiled a major cabinet reshuffle ​on Sunday (August 30, 2026), 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 Defence 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 revitalise its international policy momentum as it enters its second year, at a time when analysts are questioning the sustainability of its 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.