South Korean Presidential Policy Chief Kim Yong-beom Resigns Amid Cabinet Shakeup

On September 1, the Blue House announced that President Lee Jae-myung formally accepted the resignation of Kim Yong-beom, the chief presidential policy adviser who oversaw the administration’s macro-economic and domestic agenda. The office did not disclose a reason for his departure nor name a successor. Kim’s exit follows Lee’s first major cabinet reshuffle since taking office in June 2025, which saw ministers of finance, land, justice and defense replaced abruptly.

BloombergSouth Korean Presidential Policy Chief Kim Yong-beom Resigns; Single-Stock Leveraged ETF Controversy Proves the Final Straw — BigGo Finance South China Morning Post

Kim was a principal architect of several high-profile policies. In May, he championed the launch of single-stock leveraged exchange-traded funds (ETFs) linked to Samsung Electronics and SK Hynix, a move intended to draw retail capital into equities but which later amplified market volatility and prompted regulators to tighten investor safeguards. He also floated a “citizen dividend” concept funded by excess tax receipts from the artificial-intelligence boom, sparking public debate over the use of such windfalls.

South China Morning Post

The Lee administration is pursuing a massive chip-investment drive, coordinating roughly 1,350 trillion won (about $880 billion) in corporate spending on semiconductor plants and data centers. The Bank of Korea projects overall economic growth of 3.3 % this year, though it notes persistent structural weaknesses such as a shrinking working-age population and uneven benefits from the chip boom.

Bloomberg

Lee’s approval rating has fallen to a record low of 42 % in the latest Gallup Korea poll, with unaffordable housing identified as the top source of public dissatisfaction. Critics argue the reshuffle and Kim’s resignation are insufficient to reverse growing discontent over rising living costs.

Bloomberg

The presidential office confirmed Lee’s acceptance of Kim’s resignation but offered no explanation or successor. Lee’s administration simultaneously unveiled its 2027 budget, proposing a record increase in spending to broaden fiscal support from the chip-driven boom to households.

Bloomberg

• “The shakeup of cabinet ministers over the weekend failed to turn the tide,” — Park Chang-hwan, a professor of political science at Jangan University

Bloomberg

• “It would have been more effective if the dismissals were announced all at once,” — Park

Bloomberg

• “Not many people bought into single-stock leveraged ETFs,” — Shin Yul, a political science professor at Seoul’s Myongji University

Bloomberg

• “The fact that Kim voluntarily stepped down suggests that they felt they needed some kind of political breakthrough,” — Professor Lee, after president

Bloomberg