Samsung's heir apparent Lee Jae-yong has been placed under arrest in South Korea, accused of bribery and other charges.
The case is linked to a scandal that led to the impeachment of President Park Geun-hye.
Samsung
is accused of giving donations to non-profit foundations operated by
Choi Soon-sil, a friend of Ms Park, in exchange for government favours.
Mr Lee and the Samsung Group deny any wrongdoing.
The acting Samsung chief was first questioned by prosecutors in January, but they decided then not to arrest him.
But he was questioned for a second time earlier this week.
On
Friday, the court said it "acknowledged that it is necessary to arrest
[Lee Jae-Yong] in light of a newly added criminal charge and new
evidence."
The prosecution will now investigate further, and has
20 days to file formal charges. The arrest does not reflect a court
opinion on guilt or innocence but only means it considers the potential
crime very serious or that it assumes a flight risk.
What's the accusation?
 |
| There have been protests against President Park Geung-hye, who has been impeached |
Prosecutors
accused Mr Lee of giving donations worth 41bn won ($36m;£29m) to
organisations linked to Ms Park's close friend Ms Choi. They alleged
this was done to win government support for a big restructuring of
Samsung that would help a smooth leadership transition in favour of Mr
Lee, who is standing in as chairman for his ill father, Lee Kun-hee.
The controversial merger required support from the national pension fund - the allegation is that this support was granted in return for the donations.
In
a December parliamentary hearing, Samsung admitted giving a total of
20.4bn won to two foundations, but denied seeking favours in return.
Mr
Lee also confirmed the firm gave a horse and money to help the
equestrian career of Ms Choi's daughter, Chung Yoo-ra, something he said
he now regrets.
What's the political scandal?
This
centres around President Park's ties to Ms Choi and has brought
allegations of cult activities, influence-peddling and leaks of
classified information.
She is now on trial charged with various offences, including abuse of
authority, coercion and attempted fraud, and denies wrongdoing.
Parliament voted in December to impeach President Park. Her case is now being heard by the constitutional court. Meanwhile she has been stripped of her presidential powers.
What does it mean for Samsung?
 |
| Ms Choi has denied that she did wrong but has apologised for 'causing trouble' |
Mr
Lee is currently vice-chairman of Samsung Electronics. But since his
father, Lee Kun-hee, suffered a heart attack in 2014, he is considered
de facto boss of the entire Samsung Group conglomerate.
Regardless
of the outcome, a trial is a big blow to the company. His arrest may
not affect short term production or the running of the firm but there
could be long term implications.
Shares in the conglomerate's firms lost between 0.5% and 2% on Friday.
Shares in the conglomerate's firms lost between 0.5% and 2% on Friday.
Lee Jae-yong
Samsung's heir apparent
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- Grandson of Samsung founder Lee Byung-chul, son of current chairman Lee Kun-hee.
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- Aged 48, he's spent his entire career in the company and is vice chairman of Samsung Electronics.
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- Last year was nominated to join the board of Samsung Electronics - an appointment confirmed on 27 October.
-
- Widely expected to take overall control of Samsung once his 74-year-old father steps down.
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- Critics say his position on the board is due to his birth, not his business experience.
Getty Images
Samsung is one of the biggest electronics companies in the world and
for the head of a company that thrives on a premium brand image to be
involved in a corruption scandal is a huge embarrassment.
It says it will do its best "to ensure that the truth is revealed in future court proceedings", though denies wrongdoing.
@BBC
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