President Park Geun-hye on Thursday attended an event marking the Day of Local Autonomy in the southern port city of Busan, as the embattled leader moves to contain the fallout from a burgeoning influence-peddling scandal involving her longtime confidante.

Amid escalating public furor over the scandal surrounding Choi Soon-sil, Park carried out her official duties by participating in the event, which takes stock of the evolution of the country's provincial autonomy.

Choi -- the daughter of Park's late mentor Choi Tae-min and ex-wife of Park's former secretary Chung Yun-hoi -- is the focus of public criticism as she is alleged to have used her ties to Park to interfere with state affairs.

The scandal swirling around what critics call the "shadow president" has sent Park's approval ratings plunging and even triggered calls for impeachment by her most ardent foes.

At the ceremony in Busan, one of her political strongholds, Park called on provincial governments to put themselves at the vanguard of ongoing efforts to remove unnecessary regulations, create jobs and revive the economy.

"We have to create a new virtuous cycle of the central and provincial governments working together as one to breathe fresh life into the entire nation," Park said in her speech. "The future of the Republic of Korea hinges on your passion and capabilities."

The president also ordered local government authorities to "boldly" remove short-term, unnecessary provincial projects, ensure the proper use of taxpayers' money and seek to increase efficiency in the execution of public funds.

"The central government will also strive to help provincial governments carry out their policies based on more autonomy and fiscal soundness," Park added.

Following the event, Park was set to visit the Korea Local Autonomy Exposition, an annual exhibition to showcase key policies that have been carried out by 17 local provinces and major cities. (Yonhap)