Shin shot a 3-under-par 68 at the Kingsmill Resort course, giving her a 36-hole total of 130. Kang posted a 64 to complete the second round at 131.
Paula Creamer and Dewi Claire Schreefel shared third place at 132. Lexi Thompson and Azahara Munoz were at 133.
The tournament got back on schedule after heavy rains forced a 2-hour delay during the opening round Thursday. There were 33 players who had to return early Friday to complete the first round.
Shin has not won on the LPGA Tour in almost two years, going through a slump that has seen her drop from No. 1 in the world to No. 13.