Jang Ha-won, CEO of Discovery Asset Management (63), has been indicted without detention on charges of falsely representing information related to fund insolvency in investment proposals and pocketing investment funds worth around 100 billion KRW.
The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Ha Dong-woo) announced on the 14th that Jang was indicted without detention on charges of fraudulent unfair trading under the Capital Markets Act and bribery under the Act on the Aggravated Punishment of Specific Economic Crimes.
According to the prosecution, Jang, along with Mr. A (43), who was the head of the investment division at Discovery Asset Management, is accused of falsely representing important matters related to fund insolvency from August 2018 to April 2019, receiving approximately 109 billion KRW in investment funds from Discovery fund investors.
The prosecution explained, "Even if investments were made in non-performing bonds, losses were passed only to investors, not financial investment firms, and Jang and others continuously earned profits according to the proportion of investment recruitment," adding, "This case reveals the serious moral hazard among financial investment firms."
Jang is the younger brother of Jang Ha-sung, former Blue House Policy Chief under the Moon Jae-in administration and former Ambassador to China.
The prosecution requested an arrest warrant for Jang in September, but it was dismissed for reasons including "there appears to be room to legally dispute some charges." Subsequently, the prosecution re-requested the arrest warrant last month, but it was again dismissed citing the necessity for the exercise of defense rights.
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