A local media official and an agency head in Pohang, North Gyeongsang Province, were sentenced to prison and fines, respectively, after being indicted on charges of misappropriating government subsidies.

Judge Na So-ra of the Daegu District Court's Pohang branch sentenced the agency head to two years in prison, suspended for three years, and 120 hours of community service on fraud and other charges Thursday.

The head of a local media outlet, identified as Company A, indicted on the same charges, received a one-year prison sentence, suspended for two years. An executive at the company was sentenced to six months in prison, suspended for two years, while a former senior staff member was fined 5 million won ($3,740).

An executive at another local media outlet, Company B, was sentenced to six months in prison, suspended for two years, and an employee was fined 5 million won.

Officials at Company A and Company B were indicted on charges of conspiring with the agency head to pocket portions of local government subsidies meant to fund events. The misappropriated subsidies amounted to 400 million won and 300 million won, respectively.

During the trial, officials from Company B denied the charges, arguing the subsidies had been legitimately spent on labor costs, advertising and other event expenses. The court rejected their claims.

"We handed down these sentences taking into account the severity of the crime of defrauding a large sum in subsidies and the fact that the damage amounted to 1.3 billion won," the court said, explaining its sentencing rationale.


kbj7653@heraldcorp.com