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

[Anchor]

Kim Yong-beom, Chief of Policy, has been praised for designing key policies of the Lee Jae-myung administration, ranging from South Korea-U.S. tariff negotiations to the three major mega-projects. However, as public sentiment deteriorated over real estate issues, coupled with criticisms holding him accountable for the introduction of leveraged ETFs, he ultimately stepped down after 15 months.

Reporting by Kang Cheongwan.

[Reporter]

An elite bureaucrat who previously 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 structure for tariff negotiations using the "Masca Card" and other measures,

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

When his stock was rising as the midwife of the "three major mega-projects" and the "Honam semiconductor" initiative last June,

[Kim Yong-beom / Cheong Wa Dae Chief of Policy (June 24): There are concerns about having to go out and search for a "second cluster"...]

The stature of the Lee Jae-myung administration's policy architect appeared solid.

However, the waves stirred by the opposition party's offensive beginning with last year's parliamentary audit,

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

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

Surged further in May when Chief Kim mentioned the idea of a "national dividend" utilizing semiconductor excess tax revenues, sparking social controversy. The backlash escalated into calls for accountability starting in July, when "single-stock leveraged ETFs"—widely labeled as "Kim Yong-beom-style"—were blamed as the primary culprit behind stock market volatility.

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

In particular, remarks made by Chief Kim in Brazil last July, to the effect that "leveraged ETFs are not entirely to blame" or that "the dynamism of retail investors is partly the cause," are evaluated as having worsened the situation.

Last month, former Rebuilding Korea Party leader Cho Kuk, part of the wider 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 the execution of policies.

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.

(Camera reporting: Jung Sang-bo, Ha Ryong | Video editing: Oh Young-taek, Design: Lee Jong-jung)
※ Please note: This article was translated by AI and may contain errors.