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Kim Yong-beom, the South Korean presidential adviser who supported leveraged single-stock exchange-traded funds and proposed a citizen dividend funded by AI tax revenue, has resigned as the government attempts to boost its declining approval ratings. President Lee Jae-myung accepted Kim's resignation as chief policy secretary on Tuesday, September 1, according to the Blue House.

The presidential office did not disclose the reason or appoint a successor. Kim's departure follows the first major cabinet reshuffle since Lee took office in June 2025, where multiple finance, land, justice, and defense ministers were replaced. Political scientists argue that the ministerial shake-up did not improve the situation, suggesting a more simultaneous approach would have been more effective.

The budget unveiling for 2027 has heightened focus on whether economic growth and fiscal support can benefit more households. Housing policy dissatisfaction, particularly over property prices, has been a significant issue for those who disapproved of Lee's performance. Kim played a crucial role in several government policy initiatives, including the introduction of leveraged ETFs, but faced criticism for the rapid rollout of these products tied to Samsung Electronics and SK Hynix.

These funds contributed to extreme market volatility, leading to stricter investor protections. Kim's proposal for a citizen dividend funded by excess AI tax revenue sparked public debate, with concerns about its potential use. Kim also pushed for a major semiconductor investment drive, targeting at least 1,350 trillion won (US$880 billion) in corporate investment for chip plants and data centers to position the economy as a key player in the AI revolution.

His exit creates a significant gap in Lee's economic and policy team at a time when the administration aims to translate the semiconductor boom into broader economic benefits.