Economy, Trade and Industry minister Yuko Obuchi intends to resign over shady irregularities in the political funds reports of her support groups, a government source said.

The loss of Obuchi, a rising star in the LDP who was being groomed as a possible future prime minister, would deal a huge blow to the government of Prime Minister Shinzo Abe at a time when it is promoting women's empowerment as a pillar of its policy initiatives.

Obuchi, a 40-year-old mother of two and the daughter of a former prime minister, became chief of the powerful Ministry of Economy, Trade and Industry as one of five women appointed in the Sept. 3 Cabinet reshuffle.