Optimus Investigation, Prosecution Enters 'Battle Against Time'

Central District Prosecutors' Office Reinforces Prosecutors and Investigators
After Analyzing Seized Items Over the Weekend
Begins Full-Scale Summons and Investigation of Related Parties
Mirrors Lime Fund Redemption Suspension from a Year Ago
Targets Advisors Involved
Also Investigates Possible Collusion with Political Circles
Accelerates Efforts Amid Possibility of Transfer to the Corruption Investigation Office

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution is focusing its efforts on investigating the 'redemption suspension' incident involving Optimus Asset Management (Optimus). Amid allegations of collusion with political circles surrounding this case, there is even a possibility that the case will be transferred to the High-ranking Officials' Crime Investigation Division (HOCI), which aims to launch in mid-this month, leading to analyses that the prosecution has begun a 'race against time.'

According to the legal community on the 1st, the Seoul Central District Prosecutors' Office Investigation Division 1 (Chief Prosecutor Oh Hyun-chul), which is in charge of the investigation, recently reinforced prosecutors and investigators considering that the scale of damage caused by the redemption suspension is becoming larger than expected. The day before, they summoned lawyer Yoon (43), who is both a director of Optimus and the head of H Law Firm, as a suspect for questioning. On the 24th and 25th of last month, they conducted raids on 18 locations including Optimus's office in Samseong-dong, Gangnam-gu, Seoul, and after analyzing the seized items over the past weekend, they began to summon related parties to interrogate them about the suspicions in earnest.

The prosecution is expected to continue summoning related parties for questioning through next week. Earlier, on the 24th of last month, they imposed travel bans on Optimus CEO Kim, fund management director Song, and the head of a loan company Lee, who received the fund money, effectively restricting their movements.

This case mainly involves allegations that Optimus raised thousands of billions of won from investors by claiming to invest in public institution sales receivables but actually invested in loan companies or insolvent businesses. Recently, Optimus declared a suspension of redemptions for the fund. The number of victims is estimated to be between at least 800 and up to 2,000 people, with damages expected to reach approximately 100 billion won.

The situation largely resembles the Lime Asset Management redemption suspension incident that occurred about a year ago. However, compared to Lime, Optimus is known to involve a larger number and scale of political figures implicated in the case, prompting the financial sector, business community, and legal circles to closely monitor the prosecution's investigation trends. Accordingly, while the prosecution is currently conducting investigations limited to Optimus's illegal fund management activities, there is a high possibility that the scope will expand to include allegations of collusion with political and government circles.

The prosecution is reportedly paying particular attention to individuals who participated in Optimus's advisory group. These include Lee Heon-jae, chairman of the Yeo Si-jae Foundation and former Deputy Prime Minister for Economic Affairs during the Roh Moo-hyun administration; former Prosecutor General Chae Dong-wook; and former chairman of the Military Mutual Aid Association Kim Jin-hoon. Former CEO Lee Hyuk-jin, who founded Optimus's predecessor 'Ask Veritas Asset Management,' is also identified as a subject of investigation. Lee ran unsuccessfully in the 18th general election in 2012 as a strategic candidate for the then Democratic United Party in Seocho-gap, Seoul, and served as a financial policy special advisor to then-presidential candidate Moon Jae-in in December of the same year.

Meanwhile, even if the prosecution uncovers evidence of involvement by these political and government figures, if this occurs after mid-this month, the case may have to be handed over to HOCI. It is known that there are concerns within the prosecution about this. According to Article 24, Paragraph 2 of the HOCI Act, if the prosecution or police become aware of crimes committed by high-ranking officials, they must notify HOCI and transfer the case. However, this provision has raised concerns both inside and outside the prosecution that HOCI might cover up cases after receiving them. The prosecution's acceleration of this investigation may be interpreted as an effort to take this situation into account.