SKorea's incoming president announces Cabinet lineup aimed at restoring US ties

President-elect Lee Myung-bak announced a proposed Cabinet lineup Monday filled with nominees who will help him strengthen South Korea's half-century alliance with the United States.

Lee told a nationally televised news conference that he would name Yu Myung-hwan, current ambassador to Japan, as foreign minister to be tasked with improving the country's relations with Washington. Yu, a 61-year-old career diplomat, has served several high-profile posts handling U.S. affairs.

Lee also named former Joint Chiefs of Staff Gen. Lee Sang-hee as defense minister. The 62-year-old is known to have close ties with the U.S. and was involved in negotiations for South Korea to retake wartime command of its own forces from the U.S. The top American general in the South now assumes command of all allied forces in the event of war, but both sides agreed last year that South Korea will maintain wartime responsibility starting in 2012.

Relations between the U.S. and South Korea have frayed over a decade of liberal rule in Seoul due mainly to differences over how to deal with the North. Seoul has preferred a softer approach while Washington has opted for a tougher line.

Lee's Cabinet nominations came hours after negotiations collapsed over Lee's plan to scrap several ministries as part of a government restructuring program. The plan calls for shutting down the Unification Ministry tasked with overseeing reconciliation efforts with North Korea.

Lee, who has said he will pursue a harder line with the communist North, has said he wants to incorporate the Unification Ministry into the Foreign Ministry.

The ministry reorganization would have to be approved by Parliament, where the main liberal party holds the most seats but lacks a majority. Lee wants Parliament to pass his plan before his inauguration next Monday.

"I have pledged to revive the economy. A first step is to create a small and efficient government," Lee said. "The government has to get rid of surplus fat."

The restructuring plan has prompted a strong backlash from liberals. Outgoing President Roh Moo-hyun, who supports engagement with Pyongyang and held a summit with North Korean leader Kim Jong Il in October, has said he would veto the legislation even if it passes.