TOKYO (Reuters) - Japan's Fuji Media said on Monday that Chairman Shuji Kanoh and the head of its TV unit Koichi Minato would step down amidst a probe into alleged sexual misconduct at an event organised by one of its executives.

Fuji TV has been embroiled in a scandal since December when Japanese magazines accused Masahiro Nakai, a TV host and leader of the former boy band SMAP, of sexual misconduct at an event arranged by one of the broadcaster's executives.

Outrage over the reports and Fuji's inept handling of the matter has resulted in a damaging exodus of advertisers and calls for a management shake-up from activist shareholders.

It's also raised concerns about potentially rampant exploitation of women in Japan's entertainment industry at a time when a number of sexual misconduct scandals in various sectors have rocked the country.

Nakai, 52, has apologised on his fan website for causing trouble and announced his retirement from show business. He has also acknowledged reaching a settlement with another party but has not addressed the allegations directly. Nakai has not responded to a Reuters request for comment.