SEOUL, South Korea  A former North Korean prime minister who was banished three years ago for pushing market-oriented reforms too far has returned to the center of economic policy, leading to speculation that the nation’s leader, Kim Jong-il, might give such proposals a second chance.

The former prime minister, Pak Pong-ju, 71, resurfaced at a state function in the capital, Pyongyang, on Saturday, carrying the title of first deputy director of the central committee of the ruling Workers’ Party of Korea, according to the North’s state-run Central Broadcasting Station.

He is the latest among senior North Korean officials whose sudden banishment and equally unexpected reinstatement have sparked outside speculation about Mr. Kim’s intentions. Mr. Pak appeared to have fallen from Mr. Kim’s favor when he was fired from the premiership in 2007 and sent to work as a factory manager in a provincial town.

“His reinstatement could signal the return of pragmatists and reformists,” said Cheong Seong-chang, a North Korea analyst in the Sejong Institute south of Seoul. “We may be able to see him push the economic reform and openness he had once championed.”