The Motion Pictures Association of Korea, the organizer of Korea’s oldest film awards, the Grand Bell Film Awards, has gone bankrupt with debts exceeding 800 million won ($580,000), raising doubts as to whether this year’s events will take place in December as planned.

The festival was once regarded as the country’s top film awards, but it had been struggling to meet financial and reputational challenges.

“After the court announced bankruptcy in December last year, the association applied for a rehabilitation procedure in February, but the process has been in limbo due to the disagreement by one of the creditors,” the association said in a statement released Thursday.

According to the association, a former executive, surnamed Kim, filed for bankruptcy in December. He was also one of the creditors and left the association in 2022. The association has accused Kim of attempting to privatize the event and deprive the association of its rights.

The association became aware of the 800 million won of debt only recently, the association said, adding that it thought it was unfair for members of some 80 chapters at the association to assume responsibility for it through membership fees and donations.

“We also plan to change the group from a non-profit organization to an association of film industry insiders,” it said, highlighting its continued efforts to hold the 60th Grand Bell Film Awards this year.

Separate from financial issues, the association has been struggling to restore its reputation.

Last November, the awards ceremony suffered a poor turnout, having struggled with a string of controversies, including unfair selection of winners and poor event organization.

This cost it its leading position among country’s three biggest film awards ceremonies along with Baeksang Arts Awards and the Blue Dragon Film Awards.

Last year’s awards sought to start afresh and went for a complete overhaul, inviting YouTube creators and TikTok stars to the event as presenters, but the majority of the public saw their attendance as irrelevant.