Burning Sun Entertainment Officially Files for Bankruptcy, Company Now Enters Liquidation Stage

Kapanlagi.com - Burning Sun Entertainment, the company behind the famous nightclub Burning Sun in Gangnam, has officially begun the bankruptcy process. According to legal sources on March 25, 2025, the Seoul Bankruptcy Court Division 13 (Judge Kang Hyun Gu) declared a simple bankruptcy for this company on March 18, 2025.

A simple bankruptcy procedure applies when the debtor's remaining assets are less than 500 million Won (approximately Rp 5.65 billion). As a result, the company is now entering the liquidation stage, and creditors can file claims until April 11, 2025.

1. History and Scandal of Burning Sun Gate

Yonhap News

Founded in February 2018, Burning Sun was operated by Burning Sun Entertainment and had ties to Seungri, a former member of BIGBANG, who served as the internal director. The club was shut down in 2019 after being embroiled in a major scandal involving violence, drug distribution, sexual crimes, and alleged collusion with law enforcement.

This scandal, later known as Burning Sun Gate, implicated several key figures, including Jung Joon Young and Choi Jonghun, who were found guilty of gang rape and the distribution of illegal videos. Seungri himself was sentenced to 1 year and 6 months in prison for prostitution and illegal gambling, before being released in February 2023.

2. Legal Impact and Follow-Up

In addition to the celebrities involved, Yoon Gyu Geun, a former senior police officer, was also implicated in this case. He was accused of leaking information about police raids and destroying evidence, and was ultimately fined 20 million Won (approximately Rp 2.25 billion) for violations of capital market laws and evidence tampering.

With the liquidation process of Burning Sun Entertainment underway, a creditors' meeting is scheduled for April 29, 2025, to review the identity and amount of creditor claims. Although there is a possibility of a vote regarding the continuation of operations, the main focus of this meeting is to resolve the ongoing legal processes.

(kpl/rsp)