Prosecutors Expand Investigation into Ministry of Industry Blacklist and Arrest Jang Ha-won... Investigation into Moon Administration Accelerates

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[Asia Economy Reporters Jang Sehee and Oh Gyumin] Despite the court's dismissal of the arrest warrant for former Minister of Trade, Industry and Energy Baek Woon-kyu, the prosecution appears to be expanding its investigation to include higher-ups in the Blue House and other government departments. The police have handed over Jang Ha-won, CEO of Discovery Asset Management, who caused a 250 billion won fund redemption suspension incident, to the prosecution. There is speculation that the investigation could expand to include key figures from the previous administration depending on future investigation results.

According to the legal community on the 16th, the prosecution plans to summon Park Sang-hyuk, a Democratic Party lawmaker who worked as an administrative officer in the Presidential Personnel Office and was involved in the resignation coercion process, as a witness for questioning soon. It is known that during a search and seizure operation in March, the prosecution secured emails and other evidence implicating Park. If additional statements are obtained through further investigation, the probe could expand to cover the entire Blue House Personnel Office. At the time, former Personnel Secretary Kim Woo-ho and former Presidential Personnel Secretary Cho Hyun-ok worked alongside Park.

There is also a possibility that the investigation will expand to other blacklist allegations. Previously, the Liberty Korea Party (now the People Power Party) filed complaints with the prosecution regarding blacklist allegations involving heads of subordinate agencies under the Ministry of Unification, Ministry of Education, and Ministry of Science and ICT. Former Minister of Justice Cho Kuk, former Blue House Chief of Staff Im Jong-seok, and former Blue House Personnel Secretary Cho Hyun-ok have been reported to the Seoul Central District Prosecutors' Office for coercing resignations from executives of public institutions under their jurisdiction between 2017 and 2018.

Within the legal community, there is a consensus that although securing custody of former Minister Baek has become difficult, the investigation will continue. A lawyer who is a former prosecutor said, "With the upcoming prosecution personnel reshuffle, there is a possibility that the investigation team will partially change. Since there is an opinion that the charges have largely been substantiated, the investigation is expected to accelerate."

Earlier, Shin Yong-moo, the judge in charge of warrants at the Seoul Eastern District Court, dismissed the arrest warrant request for former Minister Baek around 9:40 p.m. the previous day, stating, "While the overall charges appear to be substantiated, some allegations are disputable," and "Considering the suspect's status and attitude, it is difficult to see a flight risk."

Meanwhile, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency transferred four individuals, including Jang Ha-won, CEO of Discovery Asset Management, who is suspected of violating the Capital Markets Act and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to the Seoul Southern District Prosecutors' Office. Jang was sent under detention, while two related individuals were sent without detention. The Discovery Asset Management corporation was also handed over to the prosecution.

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