Lee Yong-kwan and Jay Jeon were Wednesday given suspended prison sentences after being prosecuted for offences relating to their management of the Busan Film Festival.
Lee, a co-founder of the festival and its former director, was found guilty of embezzlement by a Busan court. He was handed a six month prison sentence, suspended for two years.
Jeon, also a founder of the festival and latterly head of its market, was found guilty of fraud and sentenced to six months of prison with one year of probation.
Evidence was presented that showed Lee and the festival had incorrectly paid commissions to third party agents for bringing in sponsorship revenue.
“Lee initially stated that he had approved the false documents himself, he then insisted at the court that he had not signed it. Based on statements of persons concerned, it is considered that he had tacitly approved the false fee payment,” said the chief judge, according to the Yonhap News Agency.
Lee said he would appeal against the judgement.
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The festival’s management has come under sustained attack from the city authorities since shortly before its 2014 edition when the city mayor lashed out at one of its programming decisions. And many in the Korean industry consider the criminal cases made against Lee and Jeon to have been trumped up or politically motivated.
The strife between the city and the festival — seen by many as a larger conflict about freedom of expression and growing political interference in Korea’s arts and media — was a major factor behind a partial boycott of the recently completed 2016 edition of the festival. The festival went ahead this year, but with reduced financial support from the city, attendances down by a quarter and a number of high profile Korean industry figures choosing to stay away.
