The Busan International Film Festival disputed allegations that it paid commissions illegally, saying in a statement released Tuesday that it is responsible for only minor administrative omissions.

The festival organizers claimed the complaints filed against them are an “act of retaliation” by Busan Metropolitan City for screening a controversial film despite the city’s objections.

Last Friday, the city government filed complaints with prosecutors against three members of the BIFF executive committee, including director Lee Yong-kwan, for illegally paying commissions to sponsorship brokers, following a special inspection by the Board of Audit and Inspection of Korea. 

The audit report suggested that fees were paid to unspecified parties with insufficient evidence of their brokerage activities, and advised that authorities prosecute and investigate the BIFF committee on whether the payment was awarded to “the rightful creditors.”

The festival organizers, however, argued in its statement that the lack of evidence is not proof of illegality, but due to “negligence or an error in the administrative process” that will be “actively rectified.”

The statement added that “it is a standard, socially accepted practice to pay commission to those who attract or broker sponsorships,” which the film festival heavily depends on as a source of revenue.

The committee also called the charges an “act of retaliation” by the Busan Metropolitan City for screening “The Truth Shall Not Sink with Sewol” (2014), a documentary on the April 2014 Sewol ferry sinking that criticized the government’s alleged mishandling of the accident.

“This is a clear act of retaliation for screening (the documentary),” BIFF stated. “Busan Metropolitan City has at various times pressured (BIFF), saying that it will consider withdrawing the charges if chairman Lee Yong-kwan steps down.”

A week prior to the opening of Korea’s most-recognized film event in October 2014, Mayor Seo Byung-soo expressed his wish for “The Truth” to not be shown at the festival, according to reports. While a large number of movie industry personnel rallied against what they called a “violation of the freedom of expression,” some civic groups blasted the documentary as an exploitation of a tragic accident. The film festival organizers went ahead with the screening.

Busan International Film Festival’s statement further pointed to the excessiveness of the audit board’s recommendation for prosecution, saying that “it is standard to request a correction or administrative sanctions” in similar cases.

There have, however, been previous instances where the prosecution of festival committees were advised in regard to irregularities in subsidies and funds, an official from the audit board told The Korea Herald.

Busan Metropolitan City has not yet issued an official statement but is in the process of deliberating its next steps, a department of video content official said. 

By Rumy Doo (bigbird@heraldcorp.com)