SEOUL (REUTER) - South Korean Prime Minister Lee Soo-sung is ready to resign to take responsibility for a loan scandal involving the failed Hanbo Steel Co, an official at Lee`s office said on Wednesday. State prosecutors questioned Home Affairs Minister Kim Woo-suk on suspicion of taking kickbacks in connection with loans to the failed Hanbo Steel Co, which was declared insolvent on January 23. President Kim last month ordered a probe into five trillion won ($5.8 billion) in loans to Hanbo Steel, flagship of South Korea`s 14th largest conglomerate. He has called the scandal a typical example of corruption. The prosecutors have already arrested two ruling party members of parliament, Hanbo Group founder Chung Tae-soo and two leading local bankers, in connection with the loans. South Korean President Kim Young-sam later accepted the resignation of Kim Woo-suk, a spokesman at the Prime Minister`s Office said. The minister, a close associate of President Kim Young-sam, later appeared at the prosecution office but did not answer questions by reporters on whether he accepted money from Hanbo.