"King of fools" can refer to several things. It can be a title given to a character, a song, or a metaphorical description of someone who is considered foolish, or even a leader who is making bad decisions. Link
King of Fools may refer to: Quasimodo, given the honorific "King of Fools" in Disney's 1996 film The Hunchback of Notre Dame. King of Fools (album), an album by Delirious? King of Fools (EP), an EP by Edguy. Link
The king of fools is not a real award in the real world because no one would want to receive such an award because receiving it would prove them right that they deserve the award. So it is not literal but just an expression and it can be used in the movies too.
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