Prosecution Reinvestigates 'Discovery Incident'... Jang Ha-won Accused of Breach of Trust

Prosecutors are investigating Jang Ha-won, CEO of Discovery Asset Management, on charges of breach of trust.

[Image source=Yonhap News]

The Financial Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) is conducting a search and seizure at the Discovery Asset Management office and Seoul Housing and Communities Corporation (SH Corporation) on the 6th. It is reported that prosecutors have detected circumstances in which former CEO Jang invested or used fund money in places not promised when raising funds and managing assets. They are also verifying specific details, as some of the managed fund money appears to have flowed into SH Corporation's projects.

Earlier, Jang was arrested and indicted in July last year on charges of selling a 100 billion won-scale insolvent fund and then suspending redemptions (fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act), but was acquitted by the first trial court in December of the same year.

The court ruled that it was difficult to see that CEO Jang had prior knowledge that the underlying assets of the sold fund were insolvent. The prosecution has appealed, and the second trial is currently underway.

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