Samsung shares dropped on Monday after news that a South Korean special prosecutor will seek an arrest warrant for Samsung Group chief Jay Y. Lee for charges related to an influence-peddling scandal that involves President Park Geun-hye.
Shares for units of South Korea's largest conglomerate were down on Monday: the heavily-weighted Samsung Electronics was down 2.14 percent, Samsung Heavy Industries off 0.95 percent, Samsung Engineering plunged 3.43 percent and Samsung C&T lower by 0.78 percent.
The special prosecutors office accused Lee of paying bribes to a close aide of President Park's Choi Soon-sil, totaling 43 billion won ($36.42 million).
Prosecutors had been investigating whether Samsung's support for Choi was connected to a National Pension Service 2015 decision to support the controversial Samsung C&T-Cheil merger. The National Pension Service's chairman Moon Hyung-pyo was also indicted on charges of abuse of power and giving false testimony.
Samsung Electronics, the smartphone giant, is also set to announce the results of its investigation on what caused some of its Galaxy Note 7 handsets to catch fire on Jan. 23, according to Yonhap News Agency. Samsung discontinued the Note 7 series last October, only a few months after its August launch.
The benchmark Kospi traded down 0.61 percent or 12.6 points to close at 2,064.17.