Burning Sun Entertainment, the corporation behind the infamous Burning Sun nightclub in Gangnam, has officially begun bankruptcy proceedings.

According to legal sources on March 25th KST, the Seoul Bankruptcy Court’s Division 13 (Judge Kang Hyun Gu) declared simplified bankruptcy for Burning Sun Entertainment on March 18th KST. The simplified procedure is applicable when the debtor’s remaining assets are less than 500 million KRW (approximately 342,000 USD).

As a result, the company has entered liquidation. Creditors can file claims until April 11th, with a creditor meeting and investigation scheduled for April 29th. The meeting may include votes on the potential continuation of operations, though the primary purpose is to review creditor identities and amounts.

Founded in February 2018, Burning Sun was operated by the company and infamously linked to BIGBANG member Seungri, who served as an internal director. The club closed in 2019 after becoming the center of a high-profile scandal involving assault, drug distribution, sexual crimes, and alleged collusion with law enforcement, later dubbed the Burning Sun Gate.

Core figures in the scandal, including singer Jung Joon Young and former FTISLAND member Choi Jonghun, were convicted for gang-raping an intoxicated woman in 2016 and sharing illegally filmed videos. Both have since completed their prison terms—Jung served five years, and Choi two and a half.

Seungri was sentenced to 1 year and 6 months for charges including procuring prostitution and habitual gambling, and was released in February 2023 after serving his sentence.

Meanwhile, Yoon Gyu Geun, a former senior police officer accused of leaking police crackdowns to Seungri and his business partner and instructing evidence destruction during the investigation, was fined 20 million KRW for partial charges, including violation of capital market laws and evidence tampering.

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