"We Are Also Victims" Discovery Asset Management Denies Providing Redemption Privileges

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The asset management company of the Discovery Fund, which has suspended redemptions amounting to 256 billion KRW, claims that they themselves are 'victims' and denies allegations of preferential treatment for high-ranking investors.

Discovery Asset Management stated in a press release distributed after the Financial Services Commission's sanction decision on the 16th, "Discovery Asset Management is a victim of the Direct Lending Investment (DLI) incident that occurred in the United States." DLI is the local US asset manager of the fund in which the Discovery Fund invested.

Discovery Asset Management said, "The US Securities and Exchange Commission and prosecutors, who have conducted investigations for over two years, clearly state in indictments and complaints that Discovery Asset Management is a victim defrauded by DLI," shifting responsibility to the CEO of DLI.

Regarding suspicions that 'VIP investors' such as Jang Ha-sung, Ambassador to China and elder brother of CEO Jang Ha-won, received preferential redemption treatment, Discovery Asset Management emphasized, "There could not have been and was no preferential treatment for specific investors," adding, "The individuals named in the media did not redeem their investments and are also victims who suffered losses just like other investors."

Apologizing to investors harmed by the suspension of redemptions, Discovery Asset Management pledged, "We understand well that what we can do for disappointed investors due to baseless reports released through various media is to restore investors' losses as much as possible, and we will devote ourselves to this."

Earlier that day, the Financial Services Commission held its third regular meeting and decided on sanctions against Discovery Asset Management, including a three-month partial suspension of institutional operations, a fine of 50 million KRW, and a penalty surcharge of 15 million KRW. The three-month suspension of CEO Jang's duties was also confirmed.

This content was produced with the assistance of AI translation services.