"Investing with Savings from Income and Housing Disposal... Ashamed and Apologetic to the People"
Minister Jin-young of the Ministry of the Interior and Safety is responding during the Public Administration and Security Committee's audit held at the National Assembly on the 7th. [Photo by Yonhap News]
[Asia Economy Reporter Jo In-kyung] Minister of the Interior and Safety Jin Young stated regarding the large investment in the Optimus Asset Management fund, which is suspected of a fund fraud worth over 1 trillion won, that "I simply invested a total of 600 million won together with my family after listening to the financial institution's explanation."
The Ministry of the Interior and Safety conveyed Minister Jin's position through an explanatory document on the afternoon of the 16th.
Minister Jin first apologized, saying, "I feel ashamed and sorry for causing concern to the public regarding the recent media reports about subscribing to the Optimus fund."
He explained, "At the recommendation of a financial institution employee whom I have been using for a long time, my family and I subscribed to 600 million won. The subscription details are that in February 2020, I invested 100 million won, my spouse and eldest son each invested 200 million won, and in March 2020, my spouse invested 100 million won. The investment funds came from the income of my spouse and me, as well as savings from housing sales."
The financial institution mentioned by Minister Jin is NH Investment & Securities Ichon Branch. He stated that he opened an NH Investment & Securities account in June 2012, his spouse in August 2005, and his eldest son in August 2006.
Minister Jin explained, "I simply invested after hearing that it was a stable product," and added, "The fund's redemption dates were in August and September, but redemptions have been suspended, so we have not been able to receive the funds." He also added, "The investment funds are from the income of myself and my spouse, as well as savings from housing sales, and the property details can be confirmed in the high-ranking public officials' asset disclosures published in the official gazette."
The product subscribed to by Minister Jin and his family has a 6-month maturity with a target return rate of around 2.8%, and the investment targets are domestic issued bonds and confirmed sales bonds of public institutions from companies. Because of this, some have pointed out the possibility of a conflict of interest with the minister's duties due to the product being an investment in public enterprise sales bonds.
Regarding this, a Ministry of the Interior and Safety official said, "Since fund investment is an indirect investment, it does not violate the Public Service Ethics Act, but we have requested the Ministry of Personnel Management to recheck in case there is any potential issue."
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