In a major setback to the world’s largest smartphone maker Samsung Electronics, its heir (Vice Chairman) Lee Jae-Yong along with his four other top executives were indicted on charges of bribery and embezzlement.

"Special prosecutors today indicted Samsung Electronics vice chairman Lee Jae-Yong for bribery, embezzlement, hiding of assets overseas and perjury," said Lee Kyu-Chul, spokesman for the team probing the corruption and power abuse scandal. It is to be noted that Korean President Park Geun-Hye was impeached in this case.

Korean prosecutors accused Samsung of paying bribes totalling 43 billion won ($37.74 million) to organisations linked to Park's friend, Choi Soon-sil so that it can secure government's backing on merger of two Samsung units.

It is an embarrassment for the president Park as the funding includes Samsung's sponsorship of the equestrian career of Choi's daughter, who is in detention in Denmark, having been on a South Korean wanted list.