South Korea names veteran technocrat Lee Hyoung-il as new finance chief

South Korea unveiled a major cabinet reshuffle on Sunday, 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 defense 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 revitalize its international policy momentum as it enters its second year, at a time when analysts are questioning the sustainability of his 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.