Head of National Police Agency "Investigation of Discovery's Jang Ha-sung and Kim Sang-jo Depends on Progress of Inquiry"

[Asia Economy Reporter Seongpil Cho] Nam Gu-jun, head of the National Investigation Headquarters at the Korean National Police Agency, stated that regarding Jang Ha-sung, the South Korean Ambassador to China, and Kim Sang-jo, former Presidential Policy Chief, who are involved in the Discovery Asset Management private equity fund redemption suspension case that caused massive losses to investors, "We will decide whether to investigate based on the progress of the investigation."

It is known that Ambassador Jang and former Chief Kim invested hundreds of millions to billions of Korean won in the fund. Among them, Ambassador Jang is the elder brother of Jang Ha-won, CEO of Discovery Asset Management.

At a press conference on the morning of the 21st, Director Nam said about the investigation status of this case, "We have conducted raids and seizures on banks and securities firms that sold the fund, and we are currently analyzing the related materials," adding, "We are investigating comprehensively." Regarding whether to investigate prominent figures known to have invested in the Discovery fund, such as Ambassador Jang, former Chief Kim, and former lawmaker Chae Yi-bae, he said, "It may be possible depending on the case, but (since the investigation is ongoing) it is difficult to give a specific answer."

Director Nam also commented on the investigation into whether there were preferential treatments for certain investors during the sale and redemption of the Discovery fund, stating, "We are investigating all suspicions comprehensively." Previously, some raised suspicions that VIP investors like Ambassador Jang might have received preferential treatment in redemption. However, Discovery Asset Management denied these allegations in a statement, asserting that they themselves are victims and that "there could not have been and was no preferential treatment."

The Discovery fund was sold through commercial banks such as Hana Bank and IBK Industrial Bank, as well as securities firms, starting in 2017. It became insolvent, and redemptions were suspended in April 2019. It is known that domestic investors suffered losses amounting to 256.2 billion Korean won due to this case. When asked whether they had detected signs of a liquidity crisis before the decision to suspend redemptions and yet continued fund management and sales, Director Nam responded, "We are confirming the overall flow from sales to suspension through the investigation."

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