Dear Members,

This is Haru Invest, Hugo Lee.

Our members have asked me numerous questions about the rehabilitation case, for which I appeared in court last week. Despite the status I shared with you once regarding the progress in the last announcement, I could still find many questions that reflected numerous doubts and concerns as you were unable to be fully informed about the surrounding circumstances.

To note, however, some of the questions contained parts that do not match the facts, so I would like to prioritize answering a number of questions based on the facts while sharing the current progress.

1. I and Haru Invest are currently working closely with Korean investigation agencies to meet their requests. We have submitted all materials relating to this matter (asset management, the scale of the entrustment, residual assets, and so on) to the investigative agency. The materials mentioned by several members have already been collected by the investigative agency and are being investigated. Unlike some have anxiously speculated, I and Haru Invest do not—and cannot—attempt to deceive our members with a planned rug pull.

2. I do understand that many members may be frustrated by the lack of information; still, I must inform you that I am not allowed to divulge, without limits, the details that I submitted to the investigative agency. We are concerned that disclosing these facts may hurt the matters currently underway by the investigative agency and adversely affect the recovery of member assets. Ultimately, what I can do for our members is to secure as many assets as possible. Hence, even if I may not tell you everything that is going on, I believe that, in the end, decisions that are more in favor of our members even by a slim degree must be made. And the process and its details can be officially communicated to you through the investigative agency henceforth.

3. With the exception of B&S Holdings, assets from most external partners are currently being recovered continually, and Haru Invest’s assets are also being liquidated and prepared for sale. Yet, as the recoverable assets from B&S Holdings are currently being investigated, we do not have reliable information. I would like to let you know that, except for B&S Holdings, information on the remaining assets for recovery has been given to the investigative agency.

4. Regarding the recent rehabilitation case initiated by some members, I and Haru Invest do not believe that the rehabilitation proceeding against Haru Invest initiated by certain members represents the interests of all members. My responsibility is to recover our members’ assets from the asset management partners and distribute them equitably to all Haru members. I believe that the current rehabilitation proceeding is solely in the interests of select members and that it is not in the interests of the majority of members of Haru Service with clients from all over the world. I have a plan in place to distribute the assets evenly across all members. As such, I believe that the benefits of rehabilitation for some members who filed the rehabilitation application are limited as well.

5. The fact that I told the court that Haru Invest Service’s debtor is an overseas entity is consistent with the aforementioned. 1) Indeed, the contractual party to the service is an overseas corporation serving numerous overseas members, and 2) the members’ assets are likewise owned by the overseas corporation. Some members have named Korean corporations that do not actually operate Haru Invest Service and have little assets. This is why I was concerned that accepting the rehabilitation requested by certain members would bring secondary damage to the majority of members, as well as unnecessary administrative disruptions that would affect the asset distribution timeline.

6. The plan for rehabilitation and bankruptcy proceedings, which some members are interested in, has yet to be fixed. For the time being, I believe that we must work with the investigative agency to make further efforts to move the matter forward, and I believe it is necessary to first develop a concrete plan for the distribution of assets to members based on the findings. Currently, all data has been given to the investigative agency, making it difficult for me to distribute assets arbitrarily until the investigation’s results are released. Still, we shall do our utmost to distribute member assets in continued cooperation with the authorities.

As such, based on the facts, I have shared the matters in progress. I am sure you must be feeling lingering frustration, but I would appreciate your understanding as I have comprehensively summarized what I can tell you for the time being.

Finally, please accept my sincere apologies again for your great concerns.

Hugo Lee, Haru Invest

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