Presidential chief of staff for policy resigns amid criticism on economic policies: Cheong Wa Dae

Kim Yong-beom resigned from his post as presidential chief of staff for policy, amid continuing calls for him to take responsibility for controversial economic policies on the stock market and taxation.

Presidential spokesperson Kang Yu-jung said Kim tendered his resignation on Monday and that President Lee Jae Myung accepted it Tuesday.

Kim stepped down about 15 months after being appointed as the first presidential policy chief of the Lee administration.

A Cheong Wa Dae official said that presidential aides typically serve for about six to 14 months, describing Kim’s resignation as “part of a routine personnel change aimed at maintaining momentum in policy implementation.”

Kim's departure, however, was widely viewed as a move to ease the political burden on Lee as criticism develops over the administration's economic policies.

Kim, a career economic bureaucrat, served as the control tower for the Lee administration's economic policy. With experience in both the public and private sectors, he oversaw economic, industrial and fiscal affairs, particularly as the government grappled with sluggish domestic demand and tariff pressure from the United States. He played a key role in negotiations on U.S. tariffs and investment, gaining the president's strong confidence.

But he also led policies drawing public backlash. He is known to have led the introduction of high-risk, high-return single-stock leveraged exchange-traded funds (ETFs), which caused massive volatility in local stock markets in recent months, leading to significant losses for retail investors.

Kim also faced backlash over a tax reform proposal criticized for unfairly penalizing people who own just one home but live elsewhere.

Despite the mounting criticism, he was left out of Sunday’s personnel reshuffle, sparking criticism over why the architect of some of the administration’s most disputed economic policies was spared.

“Against this backdrop, Kim’s continued presence could have undermined Lee’s efforts to demonstrate his determination for change through the reshuffle,” political commentator Park Sang-byung said. “His departure should therefore be viewed as the president effectively holding Kim accountable and having him step down.”

The timing of Kim’s resignation has reinforced this interpretation.

Kim offered to resign on the same day a Realmeter survey showed Lee's approval rating as as president falling below 40 percent for the first time.

His rating stood at 38.9 percent, down 1.3 percentage points from a week earlier, extending its decline to a seventh consecutive week.

"Regardless of whether Kim stepped down voluntarily or under pressure, I find it difficult to believe that his departure alone will suddenly change the public's perception or the overall direction of public sentiment,” said Shin Yul, a political science professor at Myongji University.

Park voiced a similar view. “It won’t make much difference,” he said.

“Kim may have to take responsibility, but ultimately, the responsibility lies with the president. Whoever takes over as policy chief now needs to produce tangible results and demonstrate that the Lee administration can deliver.”

Analysts agreed that the appointment of Kim's successor will be more important for Lee's political fortunes than Kim's departure itself.

Some potential candidates include Minister of Trade, Industry and Resources Kim Jung-kwan, Fair Trade Commission Chairperson Ju Biung-Ghi and Financial Services Commission Chairman Lee Eog-weon.

Other names being floated include Lee Ho-seung, who served as presidential policy chief under the Moon Jae-in administration, and former Minister of the Office for Government Policy Coordination Yoon Chang-ryeol.