'Discovery Fund' damaged 250 billion won investment... Representative Jang Ha-won arrested

<Anchor>

Ha-won Chang, the younger brother of Ambassador Ha-seong Jang to China, was arrested last night (8th) night of Discovery Asset Management.

The Discovery Fund managed by CEO Jang caused an investment loss of 250 billion won, and suspicions of preferential treatment for the powerful were raised.

CEO Jang is accused of selling the fund even though he knew the possibility of insolvency.

Correspondent Suwon-wook.

<Reporter>

Last night, the Seoul Southern District Court issued an arrest warrant for Jang Ha-won, CEO of Discovery Asset Management.

The court stated that the reason for the issuance was that CEO Jang was afraid of escaping and destroying evidence.

The company executives for whom a warrant was requested on the same charges were dismissed, stating that it was difficult to believe that they were likely to run away.

They are accused of using the so-called 'Ponzi scam', which sells funds while they know the possibility of insolvency, and pays new investments as profits to existing investors in a situation where there is no profit.

[Chang Ha-won/CEO of Discovery Asset Management: (Do you admit the suspicion of selling bad funds? Do you admit the suspicion of blocking investment? Do you admit the suspicion of preferential treatment for open funds?) …

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The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency, which has been investigating this case, applied for a warrant last month, but the prosecution rejected it.

Discovery Fund has been sold for more than two years since 2017, but redemption has been suspended due to problems with bad management, and investors are not getting about 250 billion won back.

In the fund, Jang Ha-seong, Ambassador to China, and Kim Sang-jo, former chief of policy at the Blue House, also invested about 6 billion won and 400 million won, respectively, in this fund.

However, unlike most of the subscribers who were in a 'closed-type fund' where redemption is not possible, the two were known to have invested in products that allow deposits and withdrawals in the middle, raising suspicions of preferential treatment.