Reprieve for Samsung as South Korean court rejects company chief's arrest warrant

A court in the South Korean capital on Thursday rejected an arrest warrant issued against Samsung heir Lee Jae-Yong. Prosecutors have accused Lee of giving millions of dollars in bribes to President Park Geiun-hye's close friend.

Samsung Group leader Jay Y. Lee arrives for bribery suspicion questioning

The Samsung chief was questioned by investigators last week for nearly 22 hours straight for his involvement in an alleged corruption scandal which led to Geun-hye's impeachment in Parliament last month.

The prosecutors are investigating a possible connection between Samsung's support for a business and foundations backed by Park's close friend Choi Soon-sil and of National Pension Service's (NPS) 2015 decision to back a controversial $8 billion merger of two Samsung Group affiliates-- Samsung C and T Corp and Cheil Industries Inc. The NPS chairman Moon Hyung-pyo was reportedly indicted on Monday on charges of giving false testimony and abuse of power.

Park Geiun-hye was impeached last month in the Parliament where members of her own party voted against her in the National Assembly motion. There have been massive protests against Park recently with thousands taking to the streets demanding her ouster. Her relationship with Choi Soon-sil reportedly led to Choi's increase in influence and other financial benefits.

The investigators had planned to question Park too after Lee's arrest, however, the rejection of his arrest doused the investigators' plans. The prosecution had also planned of expanding the investigation by probing other firms which "donated" millions of dollars to the dubious foundations Choi Soon-Sil used for her personal benefit, according to Yonhap news agency.

Lee, aged 48, was seen leaving a detention centre on Wednesday where he had waited for the court's decision for 18 hours after a hearing. Lee has been accused by special prosecutors' office of paying bribes worth $36.42 million to Choi Soon-sil, a friend of the president who is at the centre of the corruption scandal. Lee has also been accused of embezzlement and perjury.

Samsung also released a statement saying that it can not accept the accusations made against Lee.