South Korea policy chief resigns after AI chip ETF row

Kim Yong-beom, the top policy adviser to South Korean President Lee Jae Myung, has resigned after criticism over speculative investment products linked to South Korea's leading AI chip suppliers.

A presidential spokesperson said Kim submitted his resignation on Monday and Lee accepted it. His departure came a day after Lee's administration announced a cabinet reshuffle that included new finance and defence ministers.

South Korea's main bourse launched single-stock leveraged exchange-traded funds in late May tracking Samsung Electronics and SK hynix. The products, introduced under Kim's leadership, amplify a stock's daily gains and losses twofold.

The funds drew criticism for exposing retail investors to volatility and market hype. Opposition politicians rebuked the government and the presidential office, while regulators expressed regret over approving the products.

The government has since limited access to the funds to cash buyers with a minimum 30 million won, nearly $22,000, deposit.

Lee's approval rating fell below 40 percent for the first time since he took office in June 2025, reaching 38.9 percent this week.

South Korea also unveiled plans on Tuesday for a 162.3 trillion won Future Fund next year, aimed at directing tax revenue from the chip boom into youth, growth industries, regional economies and education.