'Public sentiment must guide cabinet reshuffle decisions'

'Backlash was severe after tax policy pushed without supply measures'

Democratic Party of Korea lawmaker Kim Young-jin greets colleagues after being elected chair of the National Assembly's Public Administration and Security Committee at a plenary session on June 30. [Yonhap]
Democratic Party of Korea lawmaker Kim Young-jin greets colleagues after being elected chair of the National Assembly's Public Administration and Security Committee at a plenary session on June 30. [Yonhap]

Democratic Party of Korea lawmaker Kim Young-jin on Thursday pointed to instability in the real estate and stock markets as the main drivers behind the decline in President Lee Jae Myung's approval ratings, saying those who introduced single-stock leveraged ETFs "bear some degree of responsibility" for the fallout.

Speaking on MBC Radio that day, Kim said the officials who pushed the policy "acted with an extremely shortsighted approach" and introduced it "in a state of unpreparedness," delivering what he described as a tremendous shock to many market participants.

When asked whether those responsible for the policy should resign, Kim said simply letting the matter pass "does not seem appropriate," and that a broad range of considerations should inform any decision.

Asked whether those officials should be included in a cabinet reshuffle, Kim said personnel decisions are ultimately the president's prerogative, but added that "there is a need to carefully weigh public sentiment and consider what that means for a reshuffle and personnel changes."

Kim said real estate and stock market conditions have weighed heavily on the administration's approval numbers. He argued that housing supply should have been dramatically expanded first, with tax policy serving as a complement — not a substitute. "Because supply policy was absent and tax policy was pushed out first, the backlash that followed was quite severe," he said.

Kim also noted that while the semiconductor cycle has driven an economic boom and overall growth figures have looked strong, conditions for manufacturers, small business owners and the construction sector — the areas where ordinary people's livelihoods and jobs are rooted — have not been so favorable. "Unless we put forward measures to address those problems," he said, "the boom driven by the semiconductor cycle has not yet reached the point where it transforms the lives of the broader public."


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