The brother-in-law of North Korea's leader Kim Jong-il was promoted yesterday by the country's parliament to a key defence role as part of a leadership reshuffle that analysts said appeared to be aimed at ensuring a smooth transition of power from Mr Kim to his third-son, Kim Jong-eun.

The reshuffle, unveiled at a rare second annual parliamentary session, saw Kim Yong-il, North Korea's prime minister, the man in charge of economic policy, cast aside for what analysts interpreted as his oversight of last year's failed currency revaluation. Also replaced were three of the country's vice premiers, according to state media.

The moves come as Pyongyang faces mounting tensions with South Korea after Seoul blamed the communist regime for torpedoing the navy warship Cheonan, killing 46 sailors. North Korea denies responsibility for the attack.