Discovery CEO Jang Ha-won Appears for Detention Hearing...Victims' Anger (Comprehensive)

Arrived at Court 5 Minutes Before Hearing...Silent to Reporters' Questions
Victims "Punishment Must Precede to Recover Damages"

[Image source=Yonhap News]

[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 faces charges of 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 currently faces 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 insolvent.

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

Earlier, the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit 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.

Meanwhile, the Discovery Fund Fraud Victims Countermeasures Committee held a press conference in front of the court after Jang’s appearance, urging his detention.

In a statement, the committee said, "Punishment must be carried out for the victims’ losses to be fully recovered," and insisted, "Jang, who holds the key to all processes of this incident, must be detained."

It is expected that the decision on Jang’s detention will be made late in the afternoon.

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