I cannot help but feel shock and apologise to the people

Kim Dae-jung

His apology came only hours after the country's prosecutor-general resigned following the arrest of his brother on suspicion of receiving bribes.

In other remarks, Mr Kim urged North Korea to respond without conditions to offers by the United States to re-start talks, which have been suspended since US President George Bush came to office.

He said he would hold detailed discussions on the issue with Mr Bush when he visits Seoul next month.

The US has been offering North Korea talks since June but Pyongyang has accused Washington of using its war on terrorism to try to undermine the communist state.

Shock and apologies

Mr Kim said he would set up an investigative agency under the direct control of the presidency and independent of the prosecutor's office to look into recent scandals.

"I cannot help but feel shock and apologise to the people," Mr Kim said of the scandals.

"I am sorry for corruption involving senior officials and even former and current presidential staff, " he added.

President Kim came to office to root out corruption, but the BBC's Caroline Gluck in Seoul says a series of scandals has done little to restore public confidence in his government.

Mr Kim has not been accused of wrongdoing, but several government officials have been caught up in bribery cases.

Bribery charges

Last week, the head of the government's information agency, Park Joon-Young, stepped down amid allegations that he had links with a jailed businessman at the centre of a financial scandal.

Mr Park - who officially resigned for health reasons - is one of several officials linked to the businessman, Yoon Tae-Shik.

They and several journalists are currently being investigated on charges of receiving bribes from Yoon.

And on Sunday, Prosecutor-General Shin Seung-nam offered his resignation.

His younger brother had been arrested on suspicion of receiving bribes from a businessman now facing trial on charges of embezzlement and stock price manipulation.

Although Mr Shin himself has not been implicated, it is common in South Korea for top officials to be held responsible for the wrongdoings of their relatives.