The top-level reshuffle, which also saw a new public safety minister, was the latest attempt to appease growing public anger with the president and her administration.
Park has been engulfed in a political storm over allegations that she allowed long-time friend Choi Soon-Sil, who holds no political position, to vet her speeches and have a voice in policy decisions - including cabinet appointments.
Choi is currently being detained and questioned by prosecutors over her links to Park and other allegations of influence-peddling and embezzlement.
The fraud relates to allegations that Choi - who is already in emergency detention - used her friendship with Park to strongarm companies like Samsung into donating large sums to non-profit foundations Choi set up and used for her personal gain.
The spokesman said the "abuse of power" charge - usually restricted to government officials - was based on allegations that Choi worked with one of Park's top presidential aides, Ahn Jong-Beom, to secure the corporate donations.
A presidential spokesman said Prime Minister Hwang Kyo-Ahn had been replaced "in connection with the current situation."
The new premier was named as Kim Byong-Joon, a former top aide to the late liberal president Roh Moo-Hyun.
The prime minister is a largely symbolic post in South Korea, where power is firmly concentrated in the presidency.
It is the only cabinet post requiring parliamentary approval. Opposition parties said the reshuffle was a smokescreen and suggested they would block Kim's nomination.
"People demanded that the president get rid of the Choi Soon-Sil-controlled cabinet, but this is just a second Choi Soon-Sil cabinet," a spokesman for the main opposition Democratic Party said.
Suggestions that she interfered in government policy and was given access to classified documents have exposed Park to public anger and ridicule and, with just over a year left in office, seen her approval ratings plunge into the single digits.
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