Discovery CEO Jang Ha-won Faces Arrest Decision...Prosecutors Request Warrant

On the 20th, in front of the Financial Supervisory Service in Yeouido, Seoul, members of the Financial Justice Solidarity and victims of the Discovery Fund held a press conference urging collective dispute mediation related to the Discovery Fund. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Byung-don] Jang Ha-won, CEO of Discovery Asset Management (Discovery), who is accused of selling defective funds and using new investments to pay off old ones, is facing detention.

According to the prosecution on the 2nd, the Seoul Southern District Prosecutors' Office has requested a pre-arrest warrant for CEO Jang. Although the schedule for Jang's pre-arrest suspect interrogation (warrant substantive examination) has not yet been set, it is expected to be held as early as the 3rd.

Previously, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency had applied for a pre-arrest warrant for CEO Jang on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act, but the prosecution rejected the warrant, requesting supplementary investigation.

The police recently reapplied for the warrant after reinforcing evidence to prove the charges.

CEO Jang is currently accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act. He is suspected of causing damage to investors by selling products while hiding the fact that there was a possibility of fund insolvency.

The Discovery fund is a financial product managed by Discovery Asset Management, founded by CEO Jang. Some funds suffered investor losses as redemptions were delayed due to court receivership of a local U.S. asset management company. The outstanding unpaid balance was reported to be 256.2 billion KRW as of the end of April last year.

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