Kim Yong-beom, the top policy adviser to South Korean President Lee Jae Myung, has resigned from his post amid mounting backlash over speculative investment products introduced under his tenure. These high-risk exchange-traded funds (ETFs) were designed to double the daily gains—and losses—of major AI chip manufacturers like Samsung Electronics and SK hynix. Critics argue that these products, which launched in late May, stoked unnecessary market volatility and exposed retail investors to dangerous levels of risk, with some analysts pointing to these ETFs as a primary driver behind a sharp July slump in SK hynix stock.

The resignation comes at a precarious time for the Lee administration, which is currently grappling with a cabinet reshuffle and a sliding approval rating that has dipped below 40 percent. While regulators have since tightened access to these controversial funds by requiring a minimum deposit of 30 million won, the political fallout has been severe. The controversy was further fueled by Kim’s earlier proposal to distribute "citizen dividends" from AI-driven tax surpluses, a move that drew sharp criticism regarding the sustainability of such fiscal policies. In response, the government is now pivoting to a more structured 162.3 trillion won "Future Fund," aiming to shift the focus toward long-term national investment in youth, education, and regional development.