South Korea’s foreign minister has offered to resign over nepotism allegations involving his daughter, dealing a fresh blow to the government of President Lee Myung-bak.

Yu Myung-hwan’s offer to resign comes as the government tries to repair its image after three cabinet nominees stepped down last week over corruption allegations.

“Minister Yu offered to step down, taking responsibility for causing controversy over the issue of hiring his daughter,” the foreign ministry said on Sunday.

The departure of Mr Yu would come at a critical time for Seoul which is trying to take a leading international diplomatic role ahead of November’s G20 meeting which will be held in South Korea.

“The current mood is that his resignation is likely to be accepted but no decision has been made yet,” an official at the presidential Blue House told the Financial Times.

Mr Yu apologised on Friday after it emerged that the foreign ministry had hired his daughter for a mid-level job. The hiring sparked allegations of nepotism at a time of high youth unemployment, which stands at about 8.5 per cent.

“I was careless about the possibility that my daughter’s employment at the ministry could prompt allegations about favouritism,” said Mr Yu, while denying that his daughter received preferential treatment.

Mr Yu’s 35-year-old daughter worked as a contract worker at the foreign ministry from 2006 to 2009. She recently applied for another job at the ministry but failed to pass the first round. After she was employed through another hiring process, the ministry’s homepage was bombarded by postings demanding her father’s resignation.

Aides to Mr Lee told local media that the scandal “discomforted” the president who is trying to shore up public support after his ruling party’s unexpected losses in the June election for mayors and provincial governors.

At a speech last month commemorating South Korea’s liberation from Japan’s colonial rule, Mr Lee stressed that he would make South Korea a “fair society” which provides equal opportunities to the country’s citizens.

But Mr Lee has faced public criticism recently for his poor choice of key government officials and his pardoning of business executives convicted of crimes.

Last week, the prime minister-designate and two other ministerial nominees resigned amid allegations about corruption and unethical behaviour. President Lee last month pardoned a raft of senior executives convicted of fraud, in an amnesty that critics say could undermine Seoul’s commitment to improving corporate governance.