Samsung’s de facto leader Lee Jae-yong has been arrested for bribery, embezzlement and perjury in connection with the country’s corruption scandal, in a huge setback for South Korea’s largest conglomerate that could hinder its succession and restructuring plans.  

The company’s 48-year-old leader is the highest-profile business figure engulfed by the influence-peddling scandal that is poised to topple President Park Geun-hye.

The arrest of Samsung’s chief — the first in its 79-year history — could lead to a leadership vacuum at the group, and hamper a group-wide restructuring plan for the succession to the third generation of the founding family. It could also affect key strategic decision-making such as on new large-scale investments and acquisitions.