S Korea PM offers to resign amid 'war on corruption'

South Korea's prime minister has offered to resign after finding himself embroiled in the "war on corruption" he declared last month.

Lee Wan-koo had been under pressure to step down after a businessman claimed to have made secret donations to him and other ruling party officials shortly before committing suicide earlier this month. Mr Lee denies the claim.

The affair has become a major scandal confronting the government of President Park Geun-hye, as South Koreans recoil at the familiar theme of improperly cosy relations between top business and political figures.

Ms Park is on a visit to South America until the end of this week and is not expected to decide on Mr Lee's fate until her return. "It is a pity and I can feel the prime minister's anguish," she said in Lima, according to a spokesperson.

Mr Lee became prime minister only in February after a tense parliamentary confirmation process, during which a recording emerged of him boasting to reporters about his ability to suppress unfavourable press coverage.

Having entered office, he announced a new anti-corruption drive, aimed in part at questionable investments made in a push to secure foreign energy resources under former president Lee Myung-bak.

One of that investigation's key targets, construction tycoon Sung Wan-jong, hanged himself two weeks ago as prosecutors sought a warrant for his arrest. In his pocket was a note containing names including those of Mr Lee and other figures from the ruling New Frontier party, with numbers apparently signifying gifts or donations made to each.

The figures matched those given by Sung in a newspaper interview hours before his suicide, in which he claimed to have given a secret donation of Won30m for Mr Lee's parliamentary election campaign in 2013.

"They're talking about reform and rooting out corruption, but the first to be cracked down on should be someone like Lee Wan-koo," Sung said.

Mr Lee has come under criticism for an inconsistent account of his contacts with Sung, while the opposition New Politics Alliance for Democracy on Monday vowed to seek his impeachment.

"I actually think [his resignation offer] is a little bit late," said Kim Ji-yoon, an analyst at the Asan Institute for Policy Studies. "There are not many ways to prove that he received the money but it's not a legal thing . . . the news coverage has all been focused on him."

Mr Lee's departure would force the president to seek a sixth prime ministerial nominee in just 27 months, reinforcing criticism of a flawed approach to personnel appointments.

Three nominees withdrew their candidacy amid accusations of ethical failings while Chung Hong-won, Mr Lee's predecessoror, tendered his resignation in response to the loss of 304 lives in the Sewol ferry sinking last April.

The anniversary of that disaster last week was marked by a large demonstration in central Seoul, which was restrained by police with water cannons and pepper spray.

Ms Park was widely criticised for her absence from the country, having begun her 12-day tour of South America on the day of the anniversary, and her approval rating has reversed a brief upward trend, slipping to 34 per cent last week, according to Gallup.

"This year she wanted to focus on reforms but now she's lost the driving force," Ms Kim said.

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