'Redemption Suspension' Discovery CEO Jang Ha-won Appears for Detention Warrant Hearing

It Seems the Decision on Detention Will Be Made This Afternoon

[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, appeared for a detention warrant hearing.

The Seoul Southern District Court will hold a pre-trial detention hearing (warrant substantive examination) for Jang, who is charged with fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act, starting at 10:30 a.m. on the 8th.

Jang, who arrived at the court around 10:25 a.m., remained silent when reporters asked about the sale of defective funds and whether there were any preferential treatments for open-ended funds.

As Jang appeared, waiting victims loudly criticized him, demanding that he admit to the Ponzi scheme.

Jang is currently facing charges 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 the funds could become defective.

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

Previously, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency had applied for a pre-arrest warrant for 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 reinforced the evidence to prove the charges and reapplied for the warrant, and the Seoul Southern District Prosecutors' Office filed a pre-arrest warrant request for Jang on the 2nd.

Jang’s detention decision is expected to be made late in the afternoon on the same day.

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