South Korean Prime Minister nominee Kim Tae-ho announced hisresignation Sunday amid escalating controversy over his ethical qualifications.

“I feel very sorry for causing trouble to all the people in the nation with my own problems,” Kim said at a press briefing held Sunday morning, adding that he decided to resign as prime minister designate “with the thought that I should no longer be an obstacle to President Lee Myung-bak in his carrying out of state affairs.”

Kim’s resignation came 21 days after he was nominated to become the new prime minister on Aug. 8 in a large-scale cabinet reshuffle, which also affected chiefs of seven ministries

South Korean President Lee Myung-bak has reportedly accepted Kim’s resignation, according to the presidential office Cheong Wa Dae. An official said that Cheong Wa Dae will respect Kim’s decision, and will begin to select another prime minister nominee immediately.

Kim Tae-ho faced a tough grilling at a two-day confirmation hearing last week. Opposition lawmakers quizzed him intensively on his alleged ties to a high-profile influence-peddling scandal and suspected illicit financial activities, including a sudden increase in his wealth and seemingly abnormal credit card usages.

Kim admitted that he is well acquainted with Park Yeon-cha, the convicted former head of shoemaker Taekwang Industry who bribed many politicians, but called his suspected involvement in the bribery scandal “completely groundless.”

The country’s ruling and opposition parties finally agreed on Friday to put off their floor vote on whether to approve Kim Tae- ho as the new prime minister to Sept. 1, as they failed to narrow their differences over his appointment.

Accoring to the law, the prime minister must be confirmed by a majority of votes in a National Assembly session attended by at least half of the Assembly’s 299 members.

In a separate move, two Cabinet appointees, Shin Jae-min for chief of the Ministry of Culture, Sports and Tourism, and Lee Jae- hoon for Ministry of Knowledge Economy, also announced to give up their nominations on Sunday after accusations of serious ethical violations. The president also accepted their resignations.