South Korean President Lee Jae-myung unveiled a major Cabinet reshuffle on Sunday, August 30, 2026, nominating six new ministers in the most significant government shake-up since he took office in June last year. The announcements were made by Presidential Chief of Staff Kang Hoon-sik at a televised press briefing in Seoul.
At the centre of the reshuffle is the appointment of Lee Hyoung-il, a career technocrat who has served as First Vice Finance Minister since June last year, as the new Deputy Prime Minister and Minister of Economy and Finance. Kang described the nominee as someone well versed in policy matters who would help address economic polarisation and foster stable growth. Lee Hyoung-il takes the helm at a sensitive moment: the South Korean economy has been running hotter than expected, the central bank is tightening monetary policy, and the government is simultaneously expected to boost fiscal spending ahead of its 2027 budget announcement next week. Concerns over runaway housing prices, stock market volatility, and pressure on the local bond market have weighed on the administration's approval ratings, which have recently fallen to their lowest level.
Also nominated was Kang Shin-chul, a retired four-star general and former deputy commander of the South Korea-U.S. Combined Forces Command (CFC), as the new Defence Minister. Kang, 58, currently serves as South Korea's ambassador to Saudi Arabia and is described within military circles as an inclusive leader with broad strategic expertise. Notably, he has held key defence roles under liberal, conservative, and progressive governments alike, lending him a reputation that transcends political lines. The presidential chief of staff said Kang would focus on building South Korea's self-sufficient defence capabilities while reinforcing its alliance with the United States.
Other nominees include ruling Democratic Party lawmaker Kim Seung-won as Justice Minister; Vice Land Minister Hong Jee-sun as the new Land Minister; Democratic Party Representative Lee So-young as Minister for Small and Medium-Sized Enterprises; and Representative Yong Hye-in, floor leader of the minor Basic Income Party, as Gender Equality Minister. A new presidential aide position focused on a government