'Discovery Fund' Jang Ha-won Arrested... Silent Response

Victim Group "Arrest Them"

Jang Ha-won, CEO of Discovery Asset Management, who was identified as the key figure in the 2019 large-scale redemption suspension incident involving the Discovery Fund, appeared for a pre-arrest detention hearing (warrant review).

[Image source=Yonhap News]

At 2 p.m. on the 24th, Judge Yoo Hwan-woo, in charge of warrants at the Seoul Southern District Court, conducted the warrant review for Jang Ha-won, CEO of Discovery Asset Management, and former Head of Investment Division Kim, who are accused of violating the Capital Markets Act. Mr. A, who was indicted on charges of violating the Attorney-at-Law Act and bribery under the Act on the Aggravated Punishment of Specific Economic Crimes, also underwent the detention warrant hearing.

Arriving at the court by prosecution transport vehicle around 1:56 p.m., CEO Jang headed to the courtroom without responding to reporters’ questions such as "Do you admit the charges?", "Do you have anything to say to the victims?", and "Any comments on the reapplication of the warrant?" Victims of the Discovery incident shouted slogans demanding the detention of Jang Ha-won, calling him a "financial deep-rooted evil fund fraudster."

According to the prosecution, CEO Jang and Head Kim are accused of receiving approximately 109 billion KRW in investment funds from Discovery Fund investors through false statements on important matters from August 2018 to April 2019. They are also charged with operating funds through Discovery Investment without registration as a collective investment business from January 2016 to January 2019, and obtaining private illicit gains from companies in which the fund invested.

Mr. A is accused of soliciting and requesting favors related to the affairs of district offices in Seoul or local public enterprises concerning real estate development projects partially invested in by Discovery Asset Management. He is also charged with receiving money and valuables from business operators related to real estate development projects from 2017 to July 2019 under the pretext of mediating matters related to the duties of Discovery Asset Management employees.

This is the second time this year that CEO Jang has faced the risk of detention. Previously, in September, the prosecution requested detention warrants for Jang and two other Discovery Asset Management officials, but the Seoul Southern District Court dismissed all warrants, citing reasons such as "there is room for legal dispute on some charges and insufficient evidence to guarantee the defendant’s right to defense." The charges listed in the warrant at that time included fraudulent unfair trading under the Capital Markets Act, unregistered financial investment business, breach of trust, and bribery under the Act on the Aggravated Punishment of Specific Economic Crimes.

The prosecution is investigating whether there was any illegality in the fund management process by CEO Jang and others. In July, the prosecution conducted a search and seizure of Discovery’s office and Seoul Housing & Communities Corporation (SH), and summoned CEO Jang for questioning on August 31.

Meanwhile, in a separate case, CEO Jang and others were indicted on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes related to the redemption suspension, but were acquitted in the first trial in December last year. The prosecution’s appeal is ongoing, and the second trial is currently in progress.

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