Samsung heir arrested in President graft probe

Prosecutors on Friday arrested the de facto head of South Korea's largest conglomerate, Samsung, on bribery and other charges related to a political corruption scandal that triggered the impeachment of President Park Geun-Hye.

In a fresh blow to the electronics giant's corporate image, a district court cited new evidence in approving the arrest warrant against vice-chairman Lee Jae-Yong, who oversees the family-run electronics giant in the absence of his ailing father.

Among other allegations, Lee is accused of paying nearly $40 million in bribes to a confidante of President Park's to secure policy favours.

"It is acknowledged that it is necessary to arrest (Lee Jae-Yong) in light of a newly added criminal charge and new evidence," a court spokesman said in a statement.

Samsung offered a measured response following the arrest as the company's shares took a hit, dipping by around 1.5 per cent in morning trade.

"We will do our best to ensure that the truth is revealed in future court proceedings," the company said in a statement.

Lee was already being held at a detention centre after appearing in court on Thursday as judges deliberated whether to issue an arrest warrant. He will remain in custody as he awaits a trial likely to begin within a few months.Lee, the son of the Samsung group boss Lee Kun-Hee, has been quizzed several times over his alleged role in the scandal that has rocked the nation.

The 48-year-old, described as a key suspect in the scandal, narrowly avoided being formally arrested last month, after the court ruled there was insufficient evidence.

But prosecutors on Tuesday made a second bid, saying they had collected more evidence in recent weeks. His arrest, the first for a Samsung chief, will send shock waves through the group, which is a major part of the South Korean economy and includes the world's largest smartphone maker, Samsung Electronics.

"This is a blow to Samsung's image as a global player in the short term", HMC Investment Securities' analyst Greg Roh said.