President Lee Jae Myung nominates new finance and defense ministers in major Cabinet reshuffle

President Lee Jae Myung has nominated Vice Finance Minister Lee Hyoung-il as the new finance minister and tapped five others as new ministers in a major Cabinet reshuffle, a presidential official said Sunday.

Presidential chief of staff Kang Hoon-sik announced the reshuffle at a press briefing, which included the nomination of former deputy commander of the South Korea-U.S. Combined Forces Command Kang Shin-chul as the new defense minister.

Vice Land Minister Hong Jee-sun was tapped as the new land minister; Rep. Kim Seung-won of the ruling Democratic Party (DP) as the new justice minister; Rep. Yong Hye-in, floor leader of the minor Basic Income Party, as the new gender equality minister; and DP Rep. Lee So-young as the minister for small and medium-sized enterprises.

Lee Won-ju, a senior official at the environment ministry, was meanwhile nominated as presidential aide for the "megaproject" initiative, a post to be newly created, Kang noted.

Under the investment initiative, unveiled in late June, the government will work with tech conglomerates to promote large-scale investments in semiconductor production and artificial intelligence (AI)-related facilities, with a focus on regional areas.

The nominations mark the first major Cabinet reshuffle since Lee took office as president in June last year and come as his approval rating has recently fallen to its lowest level, amid growing concerns over runaway housing prices and stock market volatility.

Kang described the reshuffle as the selection of new leaders equipped with "dynamism and expertise" who will deliver tangible changes for the people and lead the country toward a great leap forward.

The minister nominees are to undergo confirmation hearings at the National Assembly.

Under the reshuffle, former South Gyeongsang Gov. Kim Kyoung-soo was tapped as Lee's special aide for political affairs, while Rep. Lee Hai-min of the minor Rebuilding Korea Party was tapped as presidential secretary for AI policy and future planning.

"President Lee has advised (officials) to inject new vitality into people's livelihoods and growth, and expedite innovation in future industries, including AI," the presidential chief of staff said, pledging to bring about tangible outcomes in policy implementation.

The official introduced the new finance minister nominee as someone well versed in policy matters, voicing hope that he will help overcome the country's economic polarization and foster stable economic growth.

Kang also said the defense minister nominee would spearhead the country's buildup of self-sufficient defense capabilities based on its solid alliance with the United States, while the justice minister nominee would help the new criminal justice system take root swiftly and prioritize protecting the rights of crime victims.