North Korea's Kim turns to family, old guard

North Korea's rubber-stamp parliament appointed leader Kim Jong-il's brother-in-law as vice-chairman of the National Defence Commission, possibly making him the second most powerful man in the reclusive country.

It also dismissed the prime minister, seen as the main economic policy official, and replaced him with another member of the old guard and a confidant of the Kim dynasty.

Here are some implications of the reshuffle announced at a rare session of the assembly, which Kim has attended.

Safeguarding succession

The commission is seen as the pinnacle of power in the reclusive country and the nomination catapulted Jang Song-thaek, 64, the husband of Kim's sister, to the second most powerful position in the country. This puts him in line to become the caretaker leader of the dynastic state if Kim, who suffered a stroke in 2008, were to be unable to orchestrate a gradual transition of power and the grooming of his youngest son Kim Jong-un, widely tipped to be the North's next leader.

Jang, officially a vice department head of the Workers Party, had disappeared from public view for two years before returning in 2006 and quickly gaining substantial clout in the North's hierarchy.

Analysts say Jang's promotion indicates Kim is feeling the pressure from both domestic economic troubles and the international community, which has imposed sanctions for the country's nuclear test last year.

The choice of new premier, Choe Yong-rim, is another sign that Kim is turning to loyal family acquaintances at a time of rising pressures at home and abroad.

Choe is 81, according to South Korean records, and was previously the chief of staff for Kim's father and state founder Kim Il-sung, before serving in key economic posts beginning in the 1980s.

Domestic challenges

Jang, the new number two, is considered a pragmatist who earned Kim's trust through moderate policy advice. His expertise is in domestic politics and economic policy, making it unlikely that he would move to the forefront in Pyongyang's dealings with the world on its nuclear ambitions and its dispute with the South.

Little appetite for reform

Premier Kim Yong-il, a career technocrat, was probably sacked for the botched currency revaluation late last year that media reports said nearly paralysed the functioning of the North Korean economy.

With sanctions further crippling the impoverished state, Kim needs someone who will steer clear of initiatives that could lead to social unrest and threaten the transfer of power to Jong-un.

The choice of Choe, who hardly embodies reform and innovation, is seen as a fallout of Kim's recent trip to China in which he unsuccessfully sought help to launch new projects. Beijing's refusal to invest heavily in the North's economy meant that the country will have to stick to the status quo by tightly controlling the use of its limited resources. Choe, a technocrat of the old guard, is best seen as carrying out that policy.

Quiet on torpedoing of the Cheonan

Some analysts had suggested that Pyongyang might use the rare parliament session to issue a rebuttal of sanctions imposed by the South over the sinking of the corvette Cheonan. But there was no mention of the incident that has stoked fears of a conflict, indicating that parliament was focused on domestic issues.