Lee Yong-Kwan, who headed the Busan International Film Festival (BIFF) until February this year, was given a suspended jail sentence for making fraudulent payments amounting to 27.5 million won (USD 24,200) to a firm that brokers sponsorship deals.
Three other current and former BIFF officials indicted on similar charges also received suspended jail terms.
The case was brought against Lee earlier this year as the prestigious annual festival was embroiled in a bitter row with state authorities over alleged political interference.
The film, "Diving Bell," criticised Seoul's botched rescue effort during the tragedy that killed more than 300 people, mostly school children.
After it was shown, state funding for the 2015 BIFF was nearly halved and Lee, who was instrumental in getting the documentary screened, became the target of a series of probes by authorities.
Lee was forced to step down as BIFF director in February after the Busan mayor - then the chairman of the festival organising committee - refused to renew his contract.
"We had expected the court to exonerate Lee given that the charges against him were evidently a political crackdown to tame the festival," the group said in a joint statement.
"We will work together to restore Lee's reputation that has been hurt ... In this political revenge."
The court case against Lee prompted hundreds of local directors, actors and producers to stage street rallies in protest and boycott this year's festival.
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