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Jang Ha-won, CEO of Discovery Asset Management (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] SEOUL, July 4 — The Seoul High Court has scheduled the first preparatory hearing in the appeals trial of Jang Ha-won, former CEO of Discovery Asset Management, for July 20, according to legal sources on Thursday. Jang faces charges of fraudulent misrepresentation under the Capital Markets Act related to the sale of private investment funds.
Jang is accused of misstating material information about fund performance between August 2018 and April 2019, allegedly securing a total of KRW 109 billion (approx. USD 78 million) in investments from 455 investors despite the underlying asset deterioration.
He is also charged—along with former head of investments Mr. A and former executive Mr. B—with lending KRW 10.9 billion in fund capital to a housing development company between August and December 2018, and receiving shares of the company in return.
In April 2024, the Seoul Southern District Court found all three defendants guilty, sentencing Jang to 2 years in prison, suspended for 3 years, and imposing a fine of KRW 1.6 billion.
Mr. A received a 1.5-year suspended sentence and a fine of KRW 1.6 billion, while Mr. B was sentenced to 6 months in prison, suspended for 1 year. Discovery Asset Management, which was also indicted under corporate liability rules, was fined KRW 1.6 billion, with an additional KRW 1.035 billion in asset forfeitures.
The district court ruled that although the defendants did not appear to have intended deception from the outset, their actions still constituted serious violations of the Capital Markets Act.
Jang Ha-won is the younger brother of Jang Ha-sung, former South Korean Ambassador to China and former Blue House Chief Policy Advisor during the Moon Jae-in administration.
Jang was previously acquitted in a separate case involving the sale and redemption suspension of another KRW 100 billion fund, a decision that was upheld by the Supreme Court in January 2024.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
