The U.S. government says North Korean leader Kim Jong-il has initiated a political transition inside the communist regime.

Quoting leading U.S. government officials, the Wall Street Journal said in its online edition that Kim’s brother-in-law and third son are emerging as key players in the new power structure.

The business daily noted last month’s appointment of Kim’s brother-in-law, Jang Seong-taek, to the National Defense Commission is a major indication of transition. The commission is North Korea’s most powerful institutional body and is chaired by Kim.

The newspaper also quoted a senior Defense Department official as saying that the North Korean leader seems to believe his views and values are best matched by his third son, Jong-un.