S. Korea's Lee says alleged nepotism scandal unacceptable

“I was entirely responsible for the nominations of prime minister and cabinet ministers. Despite enormous pain, I decided to cancel my nominations,” said Lee.

In a Liberation Day speech last month Lee had described a “fair society” of equal opportunity as his new vision.

“The fair society policy could be painful to society's leaders and those with vested rights. Nevertheless, it will eventually bring our national status up a notch,” he said Sunday.

The Ministry of Public Administration is investigating Yu's case. It said Sunday it was expanding a probe into whether there have been other cases of favoritism in the foreign ministry's hiring of contract staff.

Ministry officials quoted by Yonhap news agency said seven of the foreign ministry's 400 officials employed under special contracts have been found to be children of incumbent diplomats.

The foreign ministry last week selected Yu's 35-year-old daughter for a mid-level post.

She failed an initial test and the ministry extended the deadline for a second application from the usual 10 days to a month. Critics said this was to give her enough time to secure necessary documents.

Yu publicly apologized for the affair but denied any undue favor had been shown to his daughter.

With youth unemployment at around 8.5 percent, the hiring sparked public anger. The foreign ministry's Internet homepage and other portals were flooded with angry postings demanding Yu's resignation.

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