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🇰🇷 South Korea /Economy & Trade

Kim Yong-beom resigns two days after South Korean Cabinet reshuffle amid housing and leverage criticism

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

Analysis Named sources Outcome reported
  • Kim Yong-beom resigned as senior policy secretary two days after President Lee Jae-myung announced changes to key economic and housing ministers.
  • His departure followed criticism over housing policy, falling economic approval, and the introduction of single-stock leveraged ETFs, which opponents said increased market volatility.
  • Government officials said the main economic policy direction would remain unchanged because President Lee had set the major priorities.

Kim Yong-beom, the senior policy secretary who directed economic policy under President Lee Jae-myung, resigned only two days after a major Cabinet reshuffle. His departure marked the first replacement of a senior presidential aide since the Lee government began 15 months ago.

Kim has tendered his resignation, and President Lee accepted it today.

— Kang Yoo-jungThe presidential spokesperson announced Kim’s resignation and its acceptance.

The resignation came as criticism mounted over worsening public sentiment on real estate and the introduction of single-stock leveraged exchange-traded funds. Government spokesperson Kang Yoo-jung said Kim offered his resignation the previous day and that Lee accepted it on Sept. 1. The timing surprised officials in the presidential office and ruling party.

Lee had announced the replacement of the deputy prime minister and finance minister, as well as the land minister, on Aug. 30. Kim, who had served as the government’s economic policy coordinator, had not been mentioned at the time. A day earlier, he had written that investment in national industrial projects should be matched by investment enabling each citizen to make a new start.

If the three mega-projects were investments for a great leap forward in Korean industry, it is now time to begin investments for a new leap forward for each individual citizen.

— Kim Yong-beomKim wrote the message on social media one day before the Cabinet reshuffle.

Kim had overseen major initiatives including US tariff negotiations, a semiconductor cluster in Honam, the next budget proposal, housing supply policy, and the launch of single-stock leveraged ETFs. Democratic lawmaker Kim Young-jin said those who introduced the products should accept some responsibility after market volatility worsened public sentiment among retail investors.

I was honored to serve as the first senior policy secretary, and this is a time when the Lee Jae-myung government needs new energy.

— Kim Yong-beomKim made the remark at his final daily presidential-office meeting.

The ruling People Power Party called the resignation an attempt to shift blame and demanded a change in policy. Its floor leader, Chung Jum-sik, called for a parliamentary investigation or special counsel inquiry into the leveraged ETF rollout. Government-aligned figures, however, said policy direction would not change simply because a working-level official had left. Further staff changes at the presidential office are expected, including replacements at senior secretary and aide level.

The direction of economic policy is decided and set by the president, and it does not change simply because a working-level official changes.

— Unnamed ruling-party officialThe official argued that Kim’s resignation would not immediately alter the government’s economic strategy.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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