The police have applied for an arrest warrant for Jang Ha-won, CEO of Discovery Asset Management, who suffered huge amounts of consumer damage due to the suspension of redemption.
The Seoul Metropolitan Police Agency's financial crime investigation team applied for an arrest warrant for Jang on charges of violating the Capital Market Act on the 6th.
Prosecutors who received the warrant application are reviewing whether to request a warrant against CEO Jang.
The Discovery Fund suffered an investment loss of more than 250 billion won as of last year due to the suspension of redemption in April 2019.
In July of last year, the police conducted a search and seizure of the offices of Discovery Asset Management and the banks that sold funds along with an application for a ban on departure for CEO Jang.
During the search and seizure process by the police, it was confirmed that Jang Ha-seong, the brother of CEO Jang Ha-seong, Ambassador to China, and Kim Sang-jo, former chief of policy at the Blue House, also invested a large amount in the fund.
Suspicions have been raised that they may have been treated differently from ordinary investors in the process of signing up or repurchasing the fund and receiving preferential treatment.
The police also summoned CEO Jang at least three times to conduct an overall investigation into the fund sale process.
As an arrest warrant for Jang was requested, the police investigation is likely to shift to senior IBK executives suspected of being involved in the fund sale at the time.
It is expected that the summons investigation will also be carried out soon.