South Korean President Park Geun Hye, the country's first female president, is facing the biggest political crisis since coming to power in 2013.
In the latest blow, prosecutors said on Nov 20 that they believed President Park was an accomplice in a corruption scandal involving her close friend Choi Soon Sil and her former aides.
Here's a quick guide on the brewing scandal and other allegations facing President Park and Choi:
WHAT PROSECUTORS SAY?
Prosecutors charged Choi and former presidential aide An Chong Bum with abuse of power by pressuring companies to contribute funds to foundations at the centre of the scandal.
Another former aid Jeong Ho Seong was indicted for leaking classified information to Choi.
Prosecutors said based on the evidence secured to date, the president was found to be in complicity with the three people to "a considerable degree".
WHO IS CHOI SOON SIL?
Ms Choi, 60, has been a close friend of Ms Park, 64, for more than 40 years.
She is the daughter of late religious leader Choi Tae Min, who set up a cult-like group known as the Church of Eternal Life.
He befriended Ms Park after her mother was killed in 1974 taking a bullet meant for her father, then president Park Chung Hee.
Mr Choi claimed that the late first lady had appeared to him in a dream, asking him to help her traumatised daughter, then 23.
He became a longtime mentor to Ms Park, who forged a strong bond with his daughter that endured after Mr Choi 's death in 1994.
Ms Choi has a 20-year-old daughter.
In 2014 when she ended her second marriage, she declared she had 36.5 billion won (S$44.5 million) worth of assets, including several properties.
She left South Korea for Germany in September when news of the scandal first emerged.
Read also: South Korean teenagers express anger in anti-Park rallies
HOW CLOSE ARE THE TWO FRIENDS?
The precise nature of the friendship has triggered media frenzy in South Korea, with lurid reports of religious cults and rituals.
The media has portrayed Ms Choi as a Rasputin-like figure who wielded an unhealthy influence over Ms Park.
Besides playing the role of a spiritual guide to the president, Ms Choi also reportedly served as her personal secretary when she entered politics in 1998, and nursed her back to health after her face was slashed by a man at an election rally in 2006.
She reportedly accompanied Ms Park to events and media interviews too.
Ms Choi apparently started keeping a low profile after Ms Park was elected president in 2012.
WHAT ARE THE ALLEGATIONS?
Editing the president's speeches:
Ms Choi had a say in some of Ms Park's speeches. She told Segye Ilbo newspaper that she was able to help Ms Park "find the right words to express herself" as she "knows what is in her mind and heart".
Reviewing presidential office reports:
Ms Choi allegedly reviewed reports from the Blue House that were up to 30cm thick almost every day.
She used them in meetings with her own advisers to discuss policy issues and draft plans that went back to the Blue House.
Shaping North Korea policy:
Ms Choi allegedly predicted North Korea would collapse in two years, and Ms Park is rumoured to have implemented foreign policies based on this.
A 2014 speech which set her vision for reunification was found in a discarded laptop belonging to Ms Choi.
Read also: South Korea's main opposition moves towards impeachment of President Park
Photo GalleryThe ‘female Rasputin’ at centre of S Korean President Park Geun-Hye political scandal
Masterminding cultural projects:
Ms Choi was accused of being the mastermind behind many key projects by the Ministry of Culture, Sports and Tourism, mostly led by her film director friend Cha Eun Taek.
Vice-Culture Minister Kim Chong, appointed in 2014, was also accused of collaborating with Ms Choi.
Abusing presidential link to raise funds:
Ms Choi was accused of abusing her friendship with the president to press conglomerates to donate to two non-profit groups she founded.
The funds are suspected to have been diverted to finance her lifestyle and other schemes.
WHERE COULD THIS SCANDAL LEAD TO?
The prosecutors' announcement would spur the opposition parties to step up their efforts to impeach the president.
"There are now sufficient grounds for her impeachment," said Mr Moon Jae In, a prominent opposition politician and presidential hopeful.
President Park has apologised twice to the nation for consulting Choi and promised to co-operate fully with the investigation.
But the public may have lost faith in her and her policies.
In recent weeks, hundreds of thousands of demonstrators have taken to the streets of Seoul in protest against the embattled leader and calling for her resignation.
The Blue House has given no sign if President Park is considering resignation.
If she does resign, Prime Minister Hwang Kyo Ahn would take over as interim leader until the country holds a mandatory election within 60 days.
Read also: South Korea prosecutors indict friend, former aides of President Park in corruption probe
WHY SHOULD THE MARKETS CARE?
South Korea, Asia's fourth-largest economy, already faces questions about its ability to maintain economic growth.
Its shipbuilding and steel industries are faltering while electronic giants like Samsung Electronics face stiff competition from Chinese manufacturers.
The political instability may add to what Bank of Korea Governor Lee Ju Yeol called uncertainties.
It may also deepen worries about long-term growth prospects and the country's competitiveness.
Read also: South Korea prosecutors say President Park was accomplice in corruption scandal
Photo GalleryTens of thousands of South Koreans stage protest in Seoul calling for President Park Geun Hye to resign
This article was first published on Nov 21, 2016.
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