South Korean media executives sentenced for subsidy fraud

The Daegu District Court Pohang Branch has handed down various prison sentences and fines to executives of regional media companies and an event planning agency for embezzling approximately 1.3 billion won in local government subsidies. The defendants were charged with fraud and violations of the Local Finance Act and the Subsidy Management Act.

According to the court, the planning agency representative conspired with media companies to inflate subsidy requests for events funded by Gyeongsangbuk-do and Pohang City. The excess funds were then returned to the media companies in a “payback” format. One media company was involved in approximately 400 million won of the fraudulent activities, while another was involved in 300 million won.

The court sentenced the planning agency representative to two years in prison, suspended for three years, along with 120 hours of community service. Several media executives received suspended prison sentences ranging from six months to one year, while administrative staff were issued fines. The court noted that while the funds were not used for personal private gain, the crime was serious due to the long-term nature of the conspiracy and the use of formal, non-existent advertising contracts to facilitate the scheme.