South Korea’s Special Prosecutor’s Office on Monday sought an arrest warrant against Samsung chief Jay Y Lee, who is accused of paying bribes worth millions to President Park Geun-hye’s friend, who is at the centre of an extortion scandal. Jay Lee is also accused of embezzlement and perjury, according to the application for an arrest warrant, Reuters reported.

The vice chairman of Samsung Electronics faces allegations of paying bribes worth 43 billion won (more than Rs 200 crore) to organisations with links to Choi Soon-sil, the president’s long-time friend and confidante. He had allegedly paid bribed to ensure the merger of two company affiliates as well as his control of the family business – he became the de facto head of the Samsung Group after his father was incapacitated by a heart attack in 2014.

Spokesman for the prosecution Lee Kyu-chul said that the office had evidence to prove that both Park Geun-hye and Choi Soon-sil had profited from payments made by the Samsung chief. “The special prosecutors’ office, in making this decision to seek an arrest warrant, determined that while the country’s economic conditions are important, upholding justice takes precedence,” he added.

Samsung – South Korea’s largest conglomerate, generating about 17% of the country’s revenue – has denied the accusations: “It is especially hard to accept the special prosecutor’s assertion that there was improper request for a favour related to the merger or succession of control,” the company said in a statement. Shares of Samsung Electronics ended 2.14% lower after the news broke.

The South Korean Parliament had impeached President Park Geun-Hye on December 9, following accusations of colluding with Choi Soon-sil to extort money in the form of donations from South Korean companies. The money, which was transferred to non-profit foundations controlled by Choi Soon-sil, was allegedly used for personal gains. The president also faces accusations of ordering her aides to leak official state documents to her friend, who has no official position in the South Korean government.

The Constitutional Court of South Korea has six months to decide on whether it will uphold the impeachment motion. Till then, Prime Minister Hwang Kyo-ahn holds the responsibility of running the country. If the court decides to remove Park Geun-Hye from the position, South Korea will have to elect a new president within 60 days of the ruling.