From "Masga" to "ETF Controversy": The Architect's 15 Months

[Anchor]

Kim Yong-beom, Chief of Policy, has been credited with designing the core policies of the Lee Jae-myung administration, ranging from South Korea-U.S. tariff negotiations to three major mega-projects. However, with public sentiment deteriorating over real estate issues and mounting calls for accountability surrounding the introduction of leveraged ETFs, he ultimately stepped down from his post after 15 months.

Reporting follows by correspondent Kang Cheongwan.

[Reporter]

An elite former bureaucrat who served as Vice Chairman of the Financial Services Commission and First Vice Minister of Economy and Finance, Cheong Wa Dae Policy Chief Kim Yong-beom.

Late last year, he framed the tariff negotiations using tools such as the "Masga Card,"

[Kim Yong-beom / Cheong Wa Dae Policy Chief (Oct. 29 of last year): We have reached an agreement on the detailed terms of the tariff negotiations with the United States.]

Back when his stock was rising in June as the midwife behind the "three major mega-projects" and the "Honam Semiconductor,"

[Kim Yong-beom / Cheong Wa Dae Policy Chief (June 24): There are concerns that we need to set out to find a "second cluster"...]

The stature of the Lee Jae-myung administration's policy architect seemed secure.

However, the waves whipped up by the opposition party's offensive starting from last year's parliamentary audit,

[Kim Eun-hye / People Power Party Lawmaker (Nov. 18 of last year): Would you want to tell your daughter to live in public rental housing?]

[Kim Yong-beom / Cheong Wa Dae Policy Chief (Nov. 18 of last year): We have not cut loans for "first-time homebuyers" or youths. What did we cut?]

Surged higher when Chief Kim mentioned his idea for a "national dividend" utilizing semiconductor tax revenue surpluses last May, causing social controversy. They peaked starting in July, when "single-stock leveraged ETFs"—which bore the public stigma of being "Kim Yong-beom-style"—were blamed as the main culprit behind stock market volatility, sparking calls for accountability.

[Chung Jeom-shik / People Power Party Floor Leader (July 20): Cheong Wa Dae has infringed upon the property rights of the public. The President must dismiss Policy Chief Kim Yong-beom.]

In particular, remarks made by Chief Kim in Brazil last July, to the effect that "not everything is because of leveraged ETFs" or attributing the cause to "the dynamism of retail investors," were reportedly seen as having worsened the situation.

Last month, former Rebuilding Korea Party leader Cho Kuk, belonging to the broader ruling bloc, joined the calls for disciplinary action, stating that "the failure of government-directed finance cannot be glossed over."

Regarding Chief Kim, who leaves behind the blueprint for government policies, Cheong Wa Dae emphasized policy execution.

However, the People Power Party demanded a parliamentary investigation and a special counsel probe into the introduction of leveraged ETFs, while the Rebuilding Korea Party asserted that Chief Kim's resignation alone was not enough and demanded that Financial Services Commission Chairman Lee Eok-won also step down.

(Video reporting: Jung Sang-bo, Ha Ryong | Video editing: Oh Young-taek | Design: Lee Jong-jung)

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