South Korean Leader Names New Finance Minister

President Kim Dae Jung replaced eight of the 19 members of his Cabinet today, naming a new finance minister to allay criticism that the pace of his economic reform program has been sluggish.

Kim retained Prime Minister Lee Han Dong in his largely ceremonial post in the reshuffle. Most of the ministers affected held economic posts and were responsible for implementing reforms drawn up more than 2 1/2 years ago during Asia’s currency crisis.

Although South Korea’s economy has recovered sharply since then, analysts and opposition leaders have accused Kim’s economic team of policy failures that have led to stagnancy in the stock market.

The new finance and economy minister is Jin Nyum, 59, who had served as chief budget planner under the current government since 1998.

Jin replaced Lee Hun Jai, who took the post in January. Lee had a leading role in a high-profile restructuring of South Korea’s financial sector under a reform program worked out with the International Monetary Fund in exchange for a multibillion-dollar loan package.

Under Lee’s direction, dozens of financially weak banks were closed, but he was criticized for his handling of inefficient, family-controlled conglomerates.

The other Cabinet posts that were changed were the ministers of commerce, industry and energy; agriculture; health and welfare; labor; maritime and fisheries; planning and budget; and education.