At a press briefing in Seoul, presidential chief of staff Kang Hoon-sik said President Lee Jae Myung has nominated Han as the next prime minister.
Referring to the outgoing prime minister, Kang also thanked Kim for his service and said the government's policy achievements were largely due to his work.
Her appointment comes about a year after she joined the cabinet, upon Lee's inauguration, as head of the ministry overseeing policies supporting young entrepreneurs and small businesses.
If she passes parliamentary confirmation at the National Assembly, she would become the country's second female prime minister, following former Prime Minister Han Myeong-sook who served from 2006 to 2007 under the Roh Moo-hyun administration.
A veteran of the IT industry, Han began her career as a tech journalist before joining Naver, where she rose to become the first female CEO of the country's largest portal.
Sunday's nomination appears to reflect Lee's focus on technological and economic innovation as his administration enters its second year, with Han expected to bring industry expertise to the role.
Meanwhile, Lee is set to hold a news conference Monday marking his first anniversary in office, where he will lay out his vision and key tasks for his second year.
He is also expected to address Han's nomination as well as the outcomes of last week's local elections, in which the ruling Democratic Party (DP), despite its overall victory, suffered losses in several strategically important areas including races where Lee had personally backed candidates.
About 160 reporters from domestic and international media outlets are expected to attend the press conference, which will last roughly 100 minutes and be divided into three key areas: policy, the economy, and society and culture.
But Lee is also likely to face questions about the local elections from reporters, as thousands of protesters continue to take to the streets calling for a re-election after some voters in southern Seoul were unable to vote or faced delays due to a shortage of ballot papers on election day.
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