Blue House Policy Chief Kim Yongbem Abruptly Resigns After 453 Days: What Led to His Departure?

First Policy Chief of the Lee Administration Steps Down

Key Aide Replaced Following Major Cabinet Reshuffle

Accountability Intensifies Amid ETF Controversy and Real Estate Instability

Calls for Resignation Emerge Even Within the Rulin

Policy Chief Kim Yongbeom of the Blue House has resigned just two days after President Lee Jae-myung's "mid-scale Cabinet reshuffle." For Kim, this comes 453 days after his appointment. The resignation is seen as a response to mounting "Kim Yongbeom accountability" issues sparked by the launch of single-stock leveraged exchange-traded funds (ETFs) and property policy controversies, which have signaled a weakening in state governance momentum. This has led to interpretations that the government's "policy commander" has now stepped down.

Kim Yongbeom, the policy chief, is listening to remarks from participants at the Cabinet meeting presided over by President Lee Jae-myung held at the Blue House on August 4. From left, Lim Gikun, Secretary General of the Office for Government Policy Coordination; Kim Yongbeom, policy chief; Choi Dongseok, head of the Ministry of Personnel Innovation. August 4, 2026 Yonhap News Agency. Photo by Yonhap

Chief Presidential Spokesperson Kang Yujeong announced at a press briefing at the Chunchugang on the morning of the 1st, "Chief Kim expressed his intention to resign on August 31," adding, "President Lee accepted the resignation today, September 1." She did not elaborate on the reasons behind the resignation or the process for appointing a successor. However, there is speculation both inside and outside the Blue House that the growing calls for accountability led to Kim's departure. According to one ruling party official, "Chief Kim may have felt pressured by growing demands for his dismissal."

Kim's resignation appears to have occurred quite abruptly. Until recently, the Blue House maintained its stance that Kim would not be replaced, and even during the reshuffle two days prior, Kim retained his post. Replacing Kim was thought to risk appearing to acknowledge opposition accusations of policy failures. However, after the reshuffle, approval ratings still fell into the 30% range, hitting a record low with no signs of recovery in governance momentum, leading to the analysis that Kim, as the top policy official, ultimately took responsibility and stepped down.

The opposition had been calling for Kim’s replacement over financial market turmoil caused by single-stock leveraged ETFs and instability in the real estate market. Jeong Jeom-sik, floor leader of the People Power Party, had argued just a day before Kim offered his resignation that he should be dismissed, citing instability in the stock, real estate, and price markets. On August 31, Party Leader Jang Dong-hyuk of the People Power Party also condemned Kim's retention and stated, "There needs to be a complete replacement with someone who is in line with the will of the people."

Recently, even within the broader ruling party coalition, there were calls for Kim to step down. On August 5, Cho Kuk, head of the Reform Policy Research Institute at the Cho Kuk Innovation Party, strongly criticized the leveraged ETF as a "clear policy failure" via his Facebook page. Cho argued, "The current crisis is a result of policy failures by the Blue House Policy Office, State Affairs Coordination Office, Financial Services Commission, and the Financial Supervisory Service, all led by Kim Yongbeom," and insisted that Kim needed to be held accountable.

Specifically, with regards to the leveraged ETF, controversy erupted over the extent of involvement by the Blue House Policy Office. Accusations emerged that Kim effectively directed financial authorities to review the product, leading to criminal complaints on charges of abuse of power. Although the allegations were not substantiated, the opposition cited this as an example of the Policy Office's excessive intervention in the market and continued to raise issues of Kim's accountability.

President Lee Jae-myung is speaking at the ministerial work report held at the Blue House State Guesthouse on the 16th. From the left, Ki-geun Lim, Director of the Office for Government Policy Coordination; Seongsook Han, Prime Minister; President Lee Jae-myung; and Yongbeom Kim, policy chief. July 16, 2026. Photo by Yonhap News Agency

Dissatisfaction and instability over housing policy remain ongoing challenges. As housing prices in the Seoul metropolitan area continued to rise, the Blue House Policy Office was charged with mediating differing opinions inside and outside the government over increasing housing supply, regulations, and financial policy. However, prolonged restrictions on real estate loans have increased discontent among actual demand groups, including young people, and after the announcement of the tax reform plan, backlash from non-resident owners of a single home has also spread, fueling further controversy.

Kim served as the inaugural policy chief under President Lee Jae-myung, working on the frontlines of government policy. As a career bureaucrat who previously served as Vice Chairman of the Financial Services Commission and First Vice Minister of Economy and Finance, President Lee selected Kim to head economic policy in order to overcome the limitations and crises of a government that had launched without a transition committee. At that time, President Lee called on Kim and other economic aides to "fight an all-out battle against recession" and to deliver results that the public could feel.

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