Samsung Group is expected to face a leadership vacuum after its de facto chief Lee Jae-yong was arrested Friday on bribery charges related to President Park Geun-hye and her confidant Choi Soon-sil.
After his father, Chairman Lee Kun-hee, was hospitalized due to a heart attack in May 2014, Samsung Electronics Vice Chairman Lee has headed the nation's top conglomerate by any measure.
"Samsung is feared to face an unprecedented leadership problem," said a professor at a Seoul-based university, who asked not to be named.
"Without its captain, do you think such a big vessel like Samsung would sail in the right direction? It is also bad news for the whole economy as Samsung is such a big business group."
Chung Chang-won, a senior analyst at Nomura Holdings, concurred.
"Samsung would experience troubles in making big decisions on M&A and strategic alliances. Its brand image would be damaged, too," he said.
"In particular, we need to keep an eye on the case of Harman International Industries whose shareholders are set to vote on Samsung's acquisition of the car component supplier."
Last November, Samsung announced that it took over Harman for $8 billion in order to gain a significant presence in the rapidly growing market for connected technologies ― particularly automotive electronics.
However, some shareholders of the U.S. firm have said they would vote against the deal, claiming that the price is too low. They plan to hold a meeting this week to vote on the merger deal.
Some executives and employees of Harman are reportedly concerned over Samsung's alleged involvement in the political scandal, which may adversely affect the key shareholders.
When contacted, Samsung did not make detailed comments on the issue.
It only said "We will do our best to ensure that the truth is revealed in future court proceedings."
Vice Chairman Lee is under suspicion of having given or promised 43 billion won ($37.6 million) to Choi, who is now in jail, in exchange for the state-run pension fund's backing of a merger of two Samsung affiliates in 2015.
A month ago, the investigation team sought a similar request, but the court rejected it. However, the court changed its stance this time around to make Lee the first Samsung tycoon to be put behind bars.
Lee's bedridden father and his grandfather, Samsung founder Lee Byung-chul, were indicted several times but they were never imprisoned.