President Lee Jae-myung on the 30th nominated First Vice Minister Lee Hyeong-il of the Ministry of Economy and Finance as the new deputy prime minister for the economy and Minister of Finance and Economy. He also nominated Democratic Party of Korea lawmaker Kim Seung-won as Minister of Justice, Democratic Party lawmaker Lee So-young as Minister of SMEs and Startups, Basic Income Party lawmaker Yong Hye-in as Minister of Gender Equality and Family, Hong Ji-seon, second vice minister of the Ministry of Land, Infrastructure and Transport (MOLIT), as Minister of Land, Infrastructure and Transport, and former deputy commander of the ROK-U.S. Combined Forces Command Kang Shin-cheol as Minister of National Defense.
◇ First Vice Minister Lee Hyeong-il as the economy chief… many sitting lawmakers brought in
Presidential chief of staff Kang Hoon-sik announced the Cabinet reshuffle at Chunchu Hall on the morning of the same day. With the government's real estate policy and sharp stock market swings cited as key reasons for the president's falling approval ratings, the move appears aimed at replacing a large number of portfolio ministers to secure governing momentum in the second year in office.
Kang said of Deputy Prime Minister nominee Lee Hyeong-il, "He is a top policy expert who has served in key economic policy posts, proving his execution capability by leading the introduction of a cap on oil prices to counter the Middle East–driven surge in crude. As a young economy chief, he will link record-high economic indicators to qualitative improvements in people's lives and overcome polarization to put our economy on a stable growth path."
Regarding Minister of Land, Infrastructure and Transport nominee Hong Ji-seon, he said, "As head of the Urban Housing Bureau in Gyeonggi Province, Hong oversaw the entire process from designing housing supply policy to on-site execution and produced tangible results in stabilizing housing, so housing will be supplied quickly and sufficiently where the public wants it." On defense minister nominee Kang Shin-cheol, he said, "Building on a solid ROK-U.S. alliance, he will strengthen self-reliant defense capabilities for future warfare and move swiftly on defense innovation, including integrating the service academies."
The reshuffle also brought many sitting lawmakers into minister posts. Kang said of Small and Medium Venture Business Minister nominee Lee So-young, a two-term lawmaker, "As a principled two-term lawmaker, she has actively advanced legislation to support startups and protect small business owners, building broad policy experience from innovation-driven growth to people's livelihoods." On Justice Minister nominee Kim Seung-won, he said, "As a former judge, he understands the intent behind overhauling the criminal justice system better than anyone," adding, "We expect him to put victims' rights first and quickly bed down the new criminal justice system."
Two figures from the progressive camp were also tapped as ministers. Explaining the background for nominating Yong Hye-in as Minister of Gender Equality and Family, Kang said, "She has spoken clearly on behalf of the socially vulnerable, including preventing digital sex crimes and creating conditions for work-family balance." On Innovation Party lawmaker Lee Hae-min, named as Blue House senior secretary for AI future planning, he said, "As a next-generation politician and former Google engineer, he has led the direction for Korea's AI by, among other things, sponsoring the basic AI act."
◇ Lee Won-ju to head the 4,700 trillion-won megaproject… Ha Jung-woo, who lost in Busan, returns
The president appointed Lee Won-ju, currently director-general for energy transition policy at the Ministry of Climate, Energy and Environment, as the newly created "Blue House adviser for megaprojects." The Blue House said Lee is a former bureaucrat who has held key posts in energy and industry and played a fixer role during crises such as the 2019 "export restrictions on semiconductor materials and parts." Ha Jung-woo, the former AI senior secretary who ran and lost in the Busan Buk-gu-gap by-election in June, was brought back as vice chair of the National AI Strategy Committee.
The president appointed former lawmaker Kim Kyeong-soo, a close aide to former President Moon Jae-in and the inaugural chair of the Presidential Committee for Balanced National Development under the current administration, as special political aide to the president. The Blue House said, "Drawing on his extensive political experience, he will connect diverse voices from the National Assembly and regions to governance, broaden understanding and consensus on current issues, and serve as a bridge for national unity and stable statecraft."