Burning Sun Entertainment enters liquidation; creditors’ meeting set for April amid long shadow of 2019 scandal.

The operator behind the infamous Burning Sun nightclub, Burning Sun Entertainment, has been officially declared bankrupt.

According to legal sources on March 25, Seoul Bankruptcy Court’s 13th Division issued a summary bankruptcy ruling against the company on March 18. A summary bankruptcy is granted when the debtor’s total assets are under 500 million KRW (approx. $340,000).

As a result, Burning Sun Entertainment is now entering liquidation proceedings. Creditors have until April 11 to submit claims, with a creditors’ meeting and investigation scheduled for April 29. During the meeting, decisions can be made on whether to continue any operations, while investigators will assess the claims and amounts owed. The company had operated the once glitzy Burning Sun nightclub in Seoul’s Gangnam district. BIGBANG’s Seungri, who was one of the club’s most prominent figures, also served as an internal director at the company.

The Scandal That Shook K-pop

Burning Sun, which opened in February 2018, became the center of national outrage later that year when a physical assault incident escalated into a sprawling web of allegations involving drug distribution, 𝓈ℯ𝓍ual assault, hidden camera crimes, and corrupt ties with law enforcement—a scandal that would later be dubbed the “Burning Sun Gate.” The club was shut down in 2019 amid intense investigations and global headlines. Two other central figures, singer Jung Joon-young and former FT Island member Choi Jong hoon, were convicted for the 2016 gang rape of an intoxicated woman and for illegally filming and sharing footage. Jung served 5 years and Choi 2 years and 6 months, both now released after completing their sentences. Seungri was sentenced to 1 year and 6 months in prison for charges including prostitution mediation and habitual gambling, and was released in February 2023 after serving his full term.

Fallout Continues

The collapse of Burning Sun Entertainment marks the final legal nail in the coffin for the company at the heart of one of Korea’s most high-profile entertainment scandals. In a related case, former police superintendent Yoon Gyu-geun, who was indicted for allegedly receiving company shares and helping cover up investigations into Seungri and his business associates, was convicted of evidence tampering and violating capital market laws, and was fined 20 million KRW.

While many of the individuals involved have now served their sentences or received judgments, the Burning Sun saga continues to cast a long shadow over the Korean entertainment industry—highlighting the dark side of fame, power, and unchecked privilege in K-pop.