SEOUL: South Korean Foreign Minister Yu Myung-hwan has resigned following accusations of nepotism involving his daughter`s employment, government sources and the ministry said on Saturday.

"The foreign minister`s resignation has been accepted by the president," said a presidential source who spoke on condition of anonymity.

"The foreign minister has resigned to accept responsibility for all the commotion caused by the ministry employing his daughter on a full time basis."

Yu`s daughter, Yu Hyun-sun, was employed at the foreign ministry between 2006 and 2009, said a foreign ministry source. She was to sign a contract on August 31 with the foreign ministry to work on trade matters, but public criticism forced her to not take up the position.

Yu Myung-hwan, 64, is one of President Lee Myung-bak`s longest serving ministers having served in the government since February 29, 2008.

BDST: 1130 HRS, September 4, 2010