Prosecutors Request Arrest Warrants for Jang Ha-won and Two Others Related to 'Discovery Fund'

The prosecution investigating the Discovery Fund corruption case, which caused a redemption suspension crisis in 2019, has requested arrest warrants for three individuals, including Jang Ha-won, CEO of Discovery Asset Management.

[Image source=Yonhap News]

On the 5th, the Joint Financial and Securities Crime Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) announced that it had requested arrest warrants for Jang Ha-won, CEO of Discovery Asset Management, former Head of Investment Division Kim, and former Operations Team Leader Kim in connection with the Discovery Fund corruption case. They are suspected of violating the Capital Markets Act (fraudulent unfair trading, unregistered financial investment business, etc.) and the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust, bribery, etc.).

They are accused of managing multiple funds and, when the redemption payments for certain insolvent funds became insufficient, covering them with funds from other funds without properly informing investors. CEO Jang Ha-won is the younger brother of Jang Ha-sung, former Ambassador to China and former Chief of Staff to the Blue House during the Moon Jae-in administration.

Previously, Jang and others were indicted on charges of selling insolvent funds worth over 100 billion won and suspending redemptions (fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations 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.