2017.01.1604:16:00UTC+00Samsung Shares Tumble as South Korean Prosecutors Seek Lee’s Arrest

Samsung shares fell on Monday after a report that South Korean prosecutors are requesting a warrant to detain Samsung Group top executive and heir Jay Y. Lee for charges which is related to an influence-peddling political scandal that involves the country's leader, President Park Geun-hye.

Shares of key units of the country's biggest conglomerate fell on Monday. Samsung Electronics fell 3% while Samsung Heavy Industries lost 0.95%. Samsung Engineering suffered a heavy hit, plunging by 4.72% and Samsung C&T fell by 1.17%.

During the development of the controversial political scandal, prosecutors have launched an investigation whether the Samsung Group is guilty of embezzlement and bribery allegations. Lee is accused of participating in payments that Samsung has given to a close acquaintance of Park, Choi soon-sil, to gain government support for a controversial merger.

Approval of the warrant is still subject to a court decision, which was announced in a briefing. A hearing is slated for Wednesday.

According to Yonhap News Agency, Samsung electronics is also scheduled to announce the outcome of its investigation on what triggered some of its Galaxy Note 7 units to catch fire on January 23.