# Lee carries out major reshuffle across Cabinet, key AI posts > Source: > Published: 2026-08-30 04:26:36+00:00 President Lee Jae Myung carried out a Cabinet reshuffle Sunday, nominating new ministers to six key portfolios and overhauling his administration’s leadership on artificial intelligence and megaprojects. Lee nominated First Vice Finance Minister Lee Hyoung-il as deputy prime minister and minister of finance and economy, putting a career economic policymaker in charge of the government’s economic agenda, presidential chief of staff Kang Hoon-sik said during a press briefing. “As a young economic policy chief, he is expected to translate record-high economic indicators into tangible improvements in people’s quality of life, overcome polarization and put the economy on a path of stable growth,” Kang said. Second Vice Land Minister Hong Jee-sun was nominated as minister of land, infrastructure and transport. Hong previously held a series of housing-related positions in the Gyeonggi provincial government and, as head of the province’s urban and housing bureau, oversaw housing policy from design through implementation. Kang said Hong was “expected to swiftly provide an adequate supply of housing in areas where people want to live.” Lee also tapped ruling Democratic Party of Korea Rep. Lee So-young as minister of SMEs and startups. A two-term lawmaker, Rep. Lee has worked on legislation to support startups and protect small merchants and is expected to lead the administration’s push to foster entrepreneurship and strengthen support for small businesses, according to Kang. For defense minister, Lee nominated Kang Shin-chul, a retired four-star general who currently serves as South Korea’s ambassador to Saudi Arabia. Kang previously served as deputy commander of the South Korea-US Combined Forces Command and as chief director of operations at the Joint Chiefs of Staff. “Based on the solid Korea-US alliance, he is expected to strengthen independent national defense capabilities in preparation for future warfare and boldly and swiftly open a new path for defense reform, including the integration of the military academies,” Kang Hoon-sik said during the press briefing. Democratic Party Rep. Kim Seung-won, a two-term lawmaker and former judge, was nominated as justice minister. “Given his deep understanding of the purpose behind the reform of the criminal justice system, he is expected to swiftly implement the new criminal justice system while making protecting victims’ rights his top priority,” Kang Hoon-sik said. Rep. Yong Hye-in of the minor progressive Basic Income Party was nominated as minister of gender equality and family. Kang described Yong as a “young, two-term lawmaker who has been an outspoken advocate for socially vulnerable groups on issues including preventing digital sex crimes and creating better conditions for balancing work and family life.” “With her fresh, grounded perspective and strong drive, she is well suited to move beyond generational and gender divisions and advance gender equality for all together with the younger generation.” Lee also reshuffled his AI policy team, naming Rebuilding Korea Party Rep. Lee Hai-min, a former Google engineer, as senior presidential secretary for AI and future planning. Ha Jung-woo, previously senior presidential secretary for AI and future planning, was nominated as vice chair of the Presidential Council on the National AI Strategy Committee. Lee Won-ju, a senior official at the Ministry of Climate, Energy and Environment, was tapped for the new presidential adviser position overseeing megaprojects across semiconductors, physical AI and AI data centers. Former South Gyeongsang Gov. Kim Kyoung-soo was also appointed as Lee’s special adviser for political affairs. Kang explained that “these appointments are aimed at leading the sweeping transformation across society that the Republic of Korea must undertake.” “With new leadership marked by dynamism and expertise, we will bring about tangible changes that the people can feel and lead the country’s leap toward an irreplaceable Republic of Korea.” dagyumji@heraldcorp.com