The head of South Korea's government information agency, Park Joon-Young, has resigned amid allegations he had links with a jailed businessman at the centre of a growing financial scandal.

Mr Park - who officially resigned on the grounds of ill health - is the latest government official to be connected to a series of scandals which have hit President Kim Dae Jung's administration.

He also appears to be the latest official linked to the jailed businessman Yoon Tae-shik.

Yoon told prosecutors that he had routinely met Mr Park to solicit his help in expanding his business - a venture company which developed computer software for security systems.

'Yoon-gate'

Mr Park, a former chief presidential spokesman, acknowledged that he had met Yoon, but denied asking for favours or receiving bribes.

Several government officials and journalists are currently being investigated on charges of receiving bribes from Yoon.

The local media are dubbing the scandal Yoon-gate, because the plot runs even deeper: Yoon was arrested in October on charges of killing his wife, an alleged North Korean agent, while living in Hong Kong in 1987.

Prosecutors say government spy agents covered up the alleged crime, using him for anti-North Korean propaganda.

President Kim came to office promising to root out corruption, but a series of scandals have done little to restore public confidence in his government. Earlier this week, during a cabinet meeting, he ordered a new crackdown on corruption in venture firms.