Optimus Management Arrest Warrant, Core Figure is Mr. Song

Kim Jaehyun CEO's Right-Hand Role
Suspected as Prosecutor's Illegal Activity Practitioner

Attorney Yoon (right) and Fund Manager Song, affiliated with H Law Firm and related to Optimus Asset Management in the 'large-scale fund redemption suspension incident,' are entering the courtroom on the 7th at the Seoul Central District Court in Seocho-gu, Seoul, to attend the pre-arrest suspect interrogation (substantive examination of the arrest warrant). Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Hyung-min] As the management of Optimus Asset Management (Optimus) faces the risk of detention amid allegations of fund fraud, the legal and financial sectors are closely watching whether Song Mo, an inside registered director, will be detained. Song is regarded as a key figure holding the key to resolving the allegations, having acted as the de facto 'right-hand man' to Optimus CEO Kim Jae-hyun. The prosecution appears to be seeking to secure Song’s custody for this reason.

On the 7th, Chief Judge Choi Chang-hoon of the Seoul Central District Court, who is in charge of warrants, began a detention hearing (warrant substantive examination) at 10:30 a.m. for CEO Kim, Song, the second-largest shareholder Lee Mo, and company director Yoon Mo. The decision on their detention will be made later that afternoon. Song and the other three appeared at the court on time for the hearing but entered the courtroom without responding to reporters’ questions. CEO Kim Jae-hyun submitted a request to waive the warrant hearing.

According to sources from the financial and legal sectors, Song was appointed as a registered director when Kim secured management rights of Optimus in 2017 and is suspected of materially and financially supporting Kim’s illegal activities. It is reported that he internally facilitated Kim’s personal use of fund money, as well as engaged in document manipulation and forgery. Additionally, Song is suspected of ordering and leading employees to systematically destroy evidence once investigations by the Financial Supervisory Service and prosecution began. If he led evidence destruction, it is highly likely that he possesses extensive information related to the fund fraud allegations.

If Song is detained, the prosecution’s investigation is expected to gain momentum. The prosecution has identified circumstances indicating that Optimus management systematically destroyed evidence, such as preemptively replacing computer hard drives during the investigation, and has pointed to Song as a key figure in the case.

The Optimus fund fraud case centers on allegations that Optimus raised hundreds of billions of won from investors by claiming to invest in public institution accounts receivable but actually invested in loan companies or insolvent firms. Recently, Optimus declared a suspension of redemptions for the fund. The number of victims is estimated to be between 800 and 2,000, with damages expected to reach approximately 100 billion won. The Seoul Central District Prosecutors’ Office Investigation Division 1 (Chief Prosecutor Oh Hyun-chul), which is investigating the case, filed detention warrants for CEO Kim and three others on the 5th.