Leveraged ETF 'Accountability' Controversy: Blue House Policy Chief Kim Yongbeom Resigns Abruptly After 15 Months

President Lee Accepts Resignation Today
Responsibility Cited for Economic Policy Controversies Amid Falling Approval Ratings

Policy Chief Kim Yongbeom of the Blue House has stepped down after 15 months in office. This marks the first replacement of a chief official at the Blue House since the inauguration of the Lee Jaemyung administration in June of last year. The decision is being linked to various issues including controversy over single-stock leveraged Exchange-Traded Funds (ETFs), instability in the real estate market, and disputes surrounding U.S. investment projects. Some observers say this signals the beginning of personnel reshuffling within the Blue House to counter the declining approval ratings, which have recently fallen to the 30% range.

Policy Chief Kim Yongbeom has resigned. Kang Yoojung, Senior Spokesperson for the Blue House, stated in a briefing on the 1st that "Chief Kim expressed his intention to resign the previous day, and President Lee accepted the resignation on the same day."

The photo shows Policy Chief Kim Yongbeom speaking at a cabinet meeting held on August 25. 2026.9.1 Yonhap News Agency
Photo by Yonhap News Agency

Kang Yoojung, Senior Spokesperson for the Blue House, held an emergency briefing on the morning of September 1 and stated, "Chief Kim expressed his intention to resign yesterday (August 31)," adding, "Accordingly, President Lee accepted the resignation today." She did not provide further details regarding the specific reasons for his resignation or plans for a successor. Policy Chief Kim did not attend the cabinet meeting that morning.

Since being appointed as the first policy chief under the Lee Jaemyung administration, Kim Yongbeom has served for 15 months as the "control tower," overseeing all economic policies aimed at fulfilling key national tasks. In particular, he took the lead on trade issues such as U.S. investment projects in response to pressure from U.S. President Donald Trump, and also played a central role in advancing the Lee administration’s signature "Three Major Mega Projects."

The main reason cited for Kim’s resignation is the recent string of controversies over economic policy. Criticism particularly intensified following the introduction of single-stock leveraged ETFs, which contributed to increased volatility in the stock market. The process of introducing these ETFs also sparked widespread debate. The opposition raised questions about the policy office's alleged pressure on financial authorities to adopt the system and pointed to possible conflicts of interest, calling for Kim’s resignation. More recently, even within the ruling party, there were discussions about the need to replace Kim Yongbeom.

Instability in the real estate market also appears to have placed significant pressure on Kim. Recently, he discussed loosening redevelopment and reconstruction regulations, as well as the use of Yongsan Park, with Seoul Mayor Oh Sehoon, but public disagreements between the two sides highlighted challenges in policy coordination. Kim was also burdened by the implementation process of U.S. investment projects. Prolonged negotiations between the two countries regarding investment targets, profitability, and project structure were seen as having a negative impact on diplomatic and security-related discussions.

Additionally, amid falling approval ratings for the administration, there is an interpretation that the growing need to restore trust in policy areas affecting people's livelihoods, such as the real estate and financial markets, also played a part in the decision.

This content was produced with the assistance of AI translation services.