Exposed Power-Type Corruption... Growing Pressure on the Optimus Investigation Team

Document and Statement Credibility... Evolving into a Power-Type Gate

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] The Optimus Asset Management scandal is rapidly evolving into a power-related gate. The credibility of internal documents and statements from involved parties, which were at the center of authenticity debates, is increasing. A change in the prosecution's stance, which had so far distanced itself from allegations of lobbying in political and government circles, is also expected. However, considering the investigation team's size has doubled and the speed and determination shown so far, there are views that there may be limitations in uncovering the full truth.

According to the prosecution on the 16th, the Economic Crime Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Joo Mincheol) plans to expand the scope of investigation beyond the financial sector to political and government circles regarding the background that allowed former Optimus CEO Kim Jaehyun to carry out a massive fund fraud.

First, the prosecution has begun additional investigations, judging that A, an employee of the Blue House's Civil Affairs Office, was partially involved in the Optimus scandal, in addition to Lee, a former Blue House administrator and wife of Optimus inside director Yoon Seokho. A, who worked at the Blue House Civil Affairs Office since early last year, reportedly resigned in July after the prosecution began investigating the Optimus fund fraud case. The prosecution has confirmed a personal connection between A and former CEO Kim.

The investigation is also accelerating regarding the 'Fund Defect Remedy' document, which contains content suggesting that Optimus executives were aware of the fund's insolvency in advance and feared it becoming a gate scandal. The Seoul Central District Prosecutors' Office, which reportedly secured this document in June, had so far denied involvement by stating, "There are no names of Blue House or political figures, except for some real names that might have been recorded." However, with the revelation of facts such as the recommendation by advisor Lee Heonjae (former Deputy Prime Minister for Economic Affairs) and the Namdong Power Plant investment case, expanding the investigation has become inevitable.

Moreover, on the 15th, the list of fund beneficiaries who suffered losses after investing large sums in the Optimus fund, including Minister of the Interior and Safety Jin Young, was disclosed. Minister Jin explained, "I invested after being encouraged through an NH Investment & Securities branch I had dealt with before, saying it was better than deposit interest, but suffered significant losses due to redemption suspension." However, it is known that the document contains names of government and ruling party officials. The prosecution may examine what roles these individuals played in connection with the investments in the future.

Nevertheless, skepticism remains about whether the investigation can approach the substance of the case, even with the investigation team size doubled. This is because the investigation team's activities are likely to be restricted amid efforts to prevent the scandal from evolving into a gate corruption case, such as Justice Minister Choo Mi-ae pointing out the internal documents as 'fake.'

In the legal community, there is analysis that although the investigation team conducted raids on 18 locations including Optimus headquarters, affiliated companies, and NH Investment & Securities, the part concerning lobbying allegations has not been investigated at all. The case for which the Seoul Central District Prosecutors' Office requested arrest warrants the day before involved brothers who are chairmen of the cosmetics company Skin&Skin, accused of participating in fraud such as Ponzi schemes related to Optimus fund investments.

A lawyer formerly with the prosecution stated, "If the investigation team, which has significantly increased in size, does not expand the investigation to include the Optimus advisory group, which includes former bank presidents and former Deputy Prime Ministers, or lobbying in political and government circles beyond the financial sector, criticism of the prosecution will inevitably continue."