19 October 2014
Last updated at 20:27 ET
Yuko Obuchi is alleged to have used funds from her political
support groups and donations on make-up and other items unconnected to
politics.
She handed Mr Abe a letter of resignation during a 30-minute meeting with him, state broadcaster NHK said.
Ms Obuchi was once seen as potentially Japan's first female premier.
Yuko Obuchi: Japanese trade and industry minister quits
Japan's trade and industry
minister has submitted her resignation to Prime Minister Shinzo Abe
over claims she abused donation funds.
She handed Mr Abe a letter of resignation during a 30-minute meeting with him, state broadcaster NHK said.
Ms Obuchi was once seen as potentially Japan's first female premier.
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