Kim Jin-sun has resigned as President of Pyeongchang 2018, it was announced today.
He revealed his decision today during an executive staff meeting of Pyeongchang 2018 held in Seoul.
His offer to resign has been accepted by the South Korean Government.
Kim's reasons for resigning are unclear as no major concerns have been expressed about Pyeongchang's preparations for the Winter Olympics and Paralympics, the first to ever be staged in South Korea.
In a speech to the employees of Pyeongchang 2018 the 67-year-old Kim said: "Pyeongchang 2018 is at a turning point for the latter half of its Games preparation, which requires more detailed planning and execution.
"At this critical juncture, I believe that Pyeongchang 2018 needs new leadership and a stronger system that will effectively carry out various Games-related projects.
"And this is why I decided to resign as President."
Kim's departure follows that of Moon Dong-hoo, vice-president and secretary general of Pyeongchang 2018, who tendered his resignation in May citing health problems but only quit earlier this month.
Pyeongchang 2018 is in the process of a review by the Board of Audit and Inspection (BAI), who refused to say what prompted the investigation in the first place.
"Yes, there is an audit going on but it's not a regular audit," a BAI spokesman told news agency Reuters.
"It is a specific-subject audit
"[Pyeongchang 2018] is not big enough for us to audit regularly, like we do the Ministry of Culture, Sports and Tourism annually.
"The process is still ongoing.
"We just completed only the on-site part of the months-long audit.
"Thus we have no result yet."
A spokesman for the Ministry of Culture, Sports and Tourism denied Kim's decision was linked to the audit.
"He has made tremendous effort and substantial contribution to winning the bid and preparing for the Games," he said.
"His resignation has nothing to do with the inspection from the BAI.
"Kim said since he has done building a foundation, such as stadiums, it makes more sense to bring in new talent to successfully host the 2018 Games.
"He felt that his role is done."
Last month Kim had played a leading role in the Sochi 2014 Debrief where Russian organisers passed on their knowledge to Pyeongchang at a special conference in South Korea attended by International Olympic Committee (IOC) President Thomas Bach and Gunilla Lindberg, head of the IOC's Coordination Commission.
Kim had been leading Pyeongchang's preparations since November 2011, having been appointed four months after they beat rivals Annecy and Munich to be awarded the Games.
Kim was serving in his second term as President, a term due to end in October 2015.
As Governor of Gangwon Province, he had the head of Pyeongchang's two failed attempts, first for the 2010 Winter Olympics and then for 2014, Games awarded to Vancouver and Sochi 2014 respectively.
After leaving that position, Kim served as a special ambassador for Pyeongchang's third and successful bid in 2011.
Rumours Kim would leave the post first surfaced last week, when he did not attend a groundbreaking ceremony for new venues for ice sports for the 2018 Olympics in Gangneung, a city near Pyeongchang.
Cho Yang-ho, chairman of Hanjin Group, a South Korean conglomerate which includes Korean Air, who was head of Pyeongchang's successful bid to host 2018, quickly ruled himself out as a replacement because of his other business commitments.
"Even though I won't be the new head of the Organising Committee I'd like to contribute the best I can from the sidelines for a successful Winter Olympics," he said.
Contact the writer of this story at [email protected]
July 2014: Celebrations as construction of Pyeongchang 2018 ice venues begins
July 2014: The Pyeongchang 2018 backstage story
July 2014: Pyeongchang 2018 sign North Face as official apparel partner
July 2014: Pyeongchang 2018 sign telecommunications provider KT Corporation as first major sponsor
June 2014: Banners protesting about broken Pyeongchang 2018 promises to greet Bach at Olympic debrief