South Korea's finance minister resigned on Monday over media allegations about his involvement in lucrative real estate deals, injecting an element of uncertainty at a crucial time for Asia's third-largest economy. President Roh Moo-hyun accepted the resignation of Lee Hun-jai but did not immediately name a successor, Yonhap news agency reported.
The central bank expects economic growth to slow to 4.0 percent this year from an estimated 4.7 percent last year. But recovering domestic demand is not expected to fully compensate for slower export growth in a country that is home to the world's top makers of ships, mobile phones and computer chips .
The power vacuum at the finance ministry was not expected to last long enough to impact significantly on economic policy, analysts said.
Under South Korea's strong presidential system, President Roh Moo-hyun and his advisers have the final say in setting key economic policies.
Domestic media have suggested that Lee, 60, who is also deputy prime minister, and his wife breached regulations governing the transfer of property in several deals.
The reports alleged his wife earned more than 5 billion won ($4.96 million) in one of the deals by selling land she had bought 24 years ago.
Lee, 60, and his wife denied any wrongdoing.
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