Prime Minister Chung Un-chan will soon tender his resignation to take responsibility for the government's failure to get parliamentary approval for a project to create a science-business hub in a central region, a government source said Thursday.

President Lee Myung-bak is aware of Chung's plan and chances are high that he will accept the resignation, the source added.

"Prime Minister Chung plans to hold a news conference later in the day to announce his intent to resign," the source said, asking not to be named.

Chung's fate as prime minister has drawn keen attention since the National Assembly voted down a revision bill a month ago to construct a business city in lieu of the originally planned administrative town in the central region of Chungcheong.

He has been in charge of drawing up the revision of the planned town, called "Sejong City," and the government's efforts to get it passed at the National Assembly.

Chung's move may speed up the process of a widely anticipated Cabinet reshuffle.
Lee is planning to go on a weeklong vacation on Sunday, and the Cabinet shake-up that would affect several ministers is expected in the second week of August.