'Redemption Suspension' Discovery CEO Jang Ha-won, Detention Warrant Hearing on the 8th

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The decision on whether to detain 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, will be made on the 8th.

The Seoul Southern District Prosecutors' Office announced on the 2nd that it had requested a pre-arrest warrant for CEO Jang. The pre-arrest suspect interrogation (warrant substantive examination) for CEO Jang is scheduled to be held at 10:30 a.m. on the 8th at the Seoul Southern District Court.

Earlier, 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 won as of the end of April last year.

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