PROSECUTORS INVESTIGATE HEDGE FUND SCANDAL

[Anchor Lead]

We're following the news about the massive financial fraud committed by Optimus Asset Management. Prosecutors have obtained evidence that Optimus executives discussed how to destroy evidence and lobby authorities shortly before the redemtion got suspended. The prosecutors are expanding the investigation, as some are calling for an independent counsel probe.

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This document contains the minutes of a meeting held shortly before the fraudulent deal was suspended. It was attended by Optimus Asset Management CEO Kim Jae-hyun. The Financial Services Commission is mentioned multiple times. The document indicates that Optimus was eager to appease the Financial Services Commission to prevent the scandal from getting out of proportion. It contains such phrases as "possibility of prosecutors limiting the FSC's indictment scope," "the FSC minimizing the indictment scope," and "a deal with the FSC." The document also states that thorough preparation is needed to obtain a probation should the company be investigated. Given the abundance of specific details contained in the document, the prosecutors are zeroing in on the FSC first. They have raided the residence of a former FSC executive who is suspected of introducing financial officials to Optimus Asset Management, and proceeded with interrogation.

[Soundbite] (FMR FINANCIAL SERVICES COMMISSION EXECUTIVE) : "(Did you receive 20 million won from Kim Jae-hyun in 2018?) ......"

The document contains multiple details about how to prepare for an investigation. It serves as further proof that Optimus executives instructed the staff to get rid of any recorded materials to prepare for raids by prosecutors. The instructions include replacing computers, changing mobile phones of the CEO and a lawyer, destroying emails and social media messages, and considering deleting surveillance camera files. The document even states that the executives discussed how to set an emergency fund to secure living expenses and attorney's fees in the worst-case scenario. Sources say the prosecutors are looking into whether the instructions mentioned in the document had indeed been carried out. The Seoul Central District Prosecutor's Office has expanded the investigation team to 18 members and dispatched five prosecutors specializing in finance and accounting probes.