'Discovery Incident' Key Figure Jang Ha-won... Police Request Arrest Warrant

Violation Charges of Fraud under the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The police have requested an arrest warrant for Jang Ha-won, CEO (63) of Discovery Asset Management (Discovery), who is suspected of causing a large-scale redemption suspension incident.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on the 9th that it had applied for an arrest warrant for CEO Jang on the 6th on charges of violating the Capital Markets Act and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

It is known that the Seoul Southern District Prosecutors' Office is reviewing whether to request an arrest warrant for CEO Jang.

The Discovery fund was sold through commercial banks and securities firms such as Hana Bank and IBK Industrial Bank between 2017 and 2019. According to the Financial Supervisory Service, as of the end of April last year, the total unpaid balance due to redemption suspension by banks and others was estimated at approximately 256.2 billion won.

CEO Jang is the younger brother of Jang Ha-sung, the ambassador to China who served as the Blue House Chief of Policy. He established Discovery Asset Management in 2016.

Earlier, in July last year, the police banned CEO Jang from leaving the country and conducted raids on Hana Bank, IBK Industrial Bank, Korea Investment & Securities, Hana Financial Investment, and others that sold the Discovery fund. During this process, it was revealed that Ambassador Jang and former Blue House Chief of Policy Kim Sang-jo also invested large sums in the fund.

Additionally, the police have summoned CEO Jang for questioning at least three times regarding the fund sales process.

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