Lee's nomination on Wednesday of Lee Hyoung-il, first vice minister of finance and economy, as deputy prime minister and finance minister is read as an attempt to soothe public anger over real estate while securing policy continuity. Many had expected the economic chief to stay on for the time being, given ongoing negotiations with the U.S. and the tax code overhaul, but the decision is seen as reflecting Lee's judgment to carry current issues forward steadily while entrusting livelihood policy to a new figure.
Since taking office, the Lee administration has rolled out a series of measures to stabilize the property market, yet home prices, particularly in Seoul, have shown little sign of cooling. The "2026 Tax Reform Plan" announced on the 3rd, which would differentiate the comprehensive real estate tax and capital gains tax burdens on single-home owners depending on whether they actually reside in the property, drew criticism for failing to adequately account for unavoidable circumstances and sparked controversy over "punitive taxation of single-home owners." Calls for revisions to reduce such side effects have poured in even from within the ruling camp.
Meanwhile, Lee's approval rating has slid from the low 40% range to the high 30s. Appointing Lee Hyoung-il, an economic policy specialist, alongside Hong Ji-sun, currently second vice minister of land, infrastructure and transport, appears intended to maintain policy continuity while sharpening execution on livelihood issues. A senior presidential office official explained the reshuffle as intended "to lace up our shoes again and run hard."
Analysts also see in the lineup a strategy to embrace the progressive camp on top of the "New Lee Jae-myung" course aimed at moderates and conservatives. At the recent Democratic Party convention, Kim Min-seok, who served as the Lee administration's first prime minister, seized the party leadership, but pro-Moon and pro-Roh forces rallied around candidate Jung Chung-rae, emerging as a bloc within the party that cannot be ignored. Against that backdrop, tapping former Gyeongsangnam-do Governor Kim Kyoung-soo, a key pro-Moon figure, as special adviser for political affairs is read as a message of widening contact with diverse factions inside the party while embracing the progressive camp as a whole.
The nomination of Basic Income Party lawmaker Yong Hye-in as gender equality and family minister and of Cho Kuk Innovation Party lawmaker Lee Hae-min, a former Google employee, as senior secretary for AI and future planning underscores the political reach of the reshuffle. It is the first time Lee has appointed lawmakers from progressive opposition parties, rather than the Democratic Party, to his cabinet and staff. The move is read as an attempt to break out of a Democratic Party-centered talent pool and expand outward across the progressive camp to consolidate the broader ruling bloc.
Born in 1990, Yong would become the first minister born in the 1990s if she is appointed after a confirmation hearing. The only two-term proportional representation lawmaker currently in the National Assembly, Yong has consistently spoken out on issues affecting women, young people and the socially disadvantaged. With support and trust in the government and ruling party weakening among younger voters, especially women in their 20s and 30s, the choice is also seen as an effort to bring a young female politician to the fore and win back that constituency — an appointment that widens the tent toward progressives while targeting young people and women.
A ruling camp official said, "In a recent meeting with the ruling party leadership, President Lee said 'we have neglected the left too much,' and this reshuffle appears to be a clear message that he intends to address that," adding, "It reflects his determination to bind the entire broader ruling bloc into a single political base."
