TOKYO (AFP) - The governor of Tokyo has submitted his resignation after admitting receiving US$500,000 (S$630,000) from a hospital tycoon ahead of his election in what he originally claimed was an interest-free, personal loan.

Naoki Inose, who was elected head of one of the world's biggest cities a year ago, said he had handed his letter of resignation to the head of the assembly.

"I have decided to resign from the post of Tokyo governor," Inose told a hurriedly arranged press conference.

"I intended to fulfil my duty of explaining to the city assembly, people of Tokyo and people of the nation, but regrettably I could not clear doubts over me. It's solely because of my lack of virtue." Inose also said he could not let the scandal impede preparations for the Olympics in 2020.