From Scandal to Shutdown: Seungri’s Burning Sun Club Officially Declared Bankrupt
According to a News1 report published on March 25, the 13th Division of the Seoul Bankruptcy Court issued a summary bankruptcy order for Burning Sun Entertainment on March 18. This type of bankruptcy is a simplified legal process granted when the debtor’s total assets are valued at 500 million KRW (approximately 342,000 USD) or less. With the ruling now in effect, the company is set to begin its liquidation process.
Burning Sun opened in 2018 and quickly rose to prominence, in part due to Seungri‘s role as an internal director. However, that same year, the nightclub became the epicenter of one of the biggest scandals in K-pop history, after an assault incident escalated into widespread allegations of drug trafficking, sexual exploitation, illegal filming, and police collusion. The far-reaching controversy became known as the “Burning Sun Gate,” and the club was permanently closed in 2019.
Several figures involved in the scandal were later convicted. Among them were singer Jung Joon-young and former FT ISLAND member Choi Jong-hoon, both sentenced for gang-raping an intoxicated woman in 2016 and for secretly recording and sharing footage of the assault. Jung received a five-year prison sentence, while Choi was sentenced to two years and six months. Both have since completed their sentences.
Seungri faced a number of serious charges, including arranging prostitution, engaging in prostitution, habitual illegal gambling, and violations of sexual crime laws. After a high-profile trial, he was sentenced to one year and six months in prison. He completed his sentence and was released in February 2023.
The bankruptcy of Burning Sun Entertainment marks a symbolic end to one of the most damaging scandals in Korean entertainment history, one that continues to cast a long shadow over the industry.
