S. Korea shakes out cabinet but keeps key ministers

S. Korea shakes out cabinet but keeps key ministers

SEOUL (Reuter): South Korean President Kim Young-sam carried
out a cabinet reshuffle yesterday but kept foreign, defense and
key economic ministers, a presidential spokesman said.

Kim also retained Prime Minister Koh Kun in the shakeout
affecting half of the 22-member cabinet.

"This reshuffle reflects President Kim's intention to pursue
economic and securities policies effectively, while managing the
Dec. 15 presidential election in a strict, fair manner,"
spokesman Yoon Yeo-joon said.

He said seven of those dropped from the cabinet were members
of the ruling New Korea Party. They were ministers for
agriculture, environment, health and welfare, maritime affairs
and government administration as well as two political affairs
ministers.

Home Affairs Minister Kang Oon-tae was replaced by former
government administration minister Cho Hae-nyoung and Justice
Minister Choi Sang-yup by senior prosecutor Kim Jong-koo.

Opposition parties have asked Kim to appoint new home affairs
and justice ministers as Kang and Choi had been deeply involved
in formulating election-related policies.

Government officials said Kim kept ministers responsible for
foreign and security policies ahead of crucial four-nation talks,
involving the two Koreas, the United States and China.

They are Deputy Prime Minister and National Unification
Minister Kwon O-kie, Foreign Minister Yoo Chong-ha and Defense
Minister Kim Dong-jin.

The talks are aimed at hammering out a lasting peace on the
Korean peninsula, the last Cold War flash point, by replacing the
1953 armistice that ended the three-year Korean War.

Deputy Prime Minister and Finance Minister Kang Kyong-shik
retained his post despite the fact that he is a member of the
ruling party. Kang said he would quit the party soon.

Kang and Trade, Industry and Energy Minister Lim Chang-yeul
stayed in the cabinet as the president wanted the continuity of
current economic policies, Kim's aide said.

South Korea has pledged to press ahead with reforms to
introduce greater competition and modernize the financial
industry despite financial woes involving some major industrial
conglomerates.

In the latest of a string of South Korean businesses pushed to
the brink of insolvency, the Jinro Group, the country's eighth
largest conglomerate, is currently fighting with its creditors to
defend itself from a third-party takeover.

Kia has run into financial difficulties after expanding
massively in its steel unit while its auto-making flagship was
hit by slumping sales.