Prosecutors Summon Jang Ha-won of 'Discovery Fund' for Investigation on Embezzlement Charges

The prosecution investigating the Discovery Fund, which caused a redemption suspension incident in 2019, summoned and questioned Jang Ha-won, CEO of Discovery Asset Management, on charges of breach of trust.

[Image source=Yonhap News]

According to the legal community on the 1st, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) summoned and questioned CEO Jang, who is accused of violating the Capital Markets Act and breach of trust, and is investigating senior officials of Discovery Asset Management.

They are suspected of operating multiple funds and, when the redemption funds for certain insolvent funds became insufficient, covering them with money from other funds without properly informing investors. CEO Jang Ha-won is the younger brother of Jang Ha-sung, former policy chief at the Blue House during the Moon Jae-in administration and former ambassador to China.

Previously, CEO Jang and others were indicted on charges of selling insolvent funds worth over 100 billion won and suspending redemptions (fraud under the Special Act on the Punishment of Specific Economic Crimes and violation of the Capital Markets Act), but were acquitted in the first trial in December last year. The second trial is currently underway following the prosecution's appeal.

The prosecution has continued related investigations, including raiding the offices of Discovery Asset Management and the Seoul Housing and Communities Corporation (SH Corporation) on the 6th of last month.

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