Burning Sun’s scandalous nightclub announces bankruptcy after 7 years of its opening and controversial past

Burning Sun’s scandalous nightclub announces bankruptcy after 7 years. (Image via YouTube/BBC World Service)
Burning Sun’s scandalous nightclub announces bankruptcy after 7 years. (Image via YouTube/BBC World Service)

On March 26, 2025, Maeil Business Newspaper reported that Burning Sun Entertainment, the operator of the problematic Burning Sun Nightclub in Gangnam, Seoul, filed for bankruptcy.

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On March 18, 2025, District 13 of the Seoul Bankruptcy Court officially opened simplified bankruptcy proceedings for the company. The jury was presided over by Judge Kang Hyun-gu. This proceeding is initiated when a debtor's asset valuation is equal or below 500 million KRW (around $341,000).

The Burning Sun nightclub opened on February 23, 2018, at Le Méridien Seoul in Gangnam. Known for its luxury and top-tier facilities, it quickly became a popular nightlife spot in Seoul.

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Netizens often referred to the club as "Seungri's Club,” as it was co-owned by former BIGBANG member Seungri.

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What is the Burning Sun scandal? A detailed timeline synopsis of South Korea's darkest s*x crime controversy

The Burning Sun scandal surfaced in early 2019, alleging a complex network of illegal behavior involving celebrities and the self-proclaimed wealthy elites in South Korea's entertainment industry.

Marketed as "South Korea's finest club," the Burning Sun nightclub featured EDM and hip-hop floors and 60 VIP tables, attracting wealthy patrons.

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On November 24, 2018, a reported assault involving club staff and a patron named Kim Sang-kyo, put Burning Sun in the public eye. Kim Sang-kyo allegedly stated that he had been attacked by the club's staff and that the police had neglected to do anything about it.

On January 28, 2019, the assault incident gained national attention when MBC Newsdesk aired a segment that included CCTV images of the attack. The reaction to the report led to public outrage and additional media investigations into the club's operations.

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On February 26, 2019, amidst ongoing investigation, SBS FunE released the KakaoTalk chatroom, which proved BIGBANG's Seungri's involvement in arranging prostitutes for VIP guests in his clubs. The 2024 BBC documentary further revealed how the club staff would look for drunk women to take to the "VIP Red Room."

On March 11, 2019, Attorney Bang Jung-hyun stated that he found incriminating KakaoTalk chats from a whistleblower. He turned over the chat screenshots to the Anti-Corruption and Civil Rights Commission. The chats also revealed Jung Joon-young acknowledging r*ping two victims and sharing the content he filmed in a KakaoTalk chatroom.

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On March 27, 2019, police called BIGBANG's Seungri and former K-pop star Jung Joon-young in for questioning. Jung admitted to secretly filming s*xual videos of women who were drunk or incapacitated and admitted to gang r*pe. This led to a huge investigation into the infamous KakaoTalk chatroom and its members.

On November 29, 2019, Jung was convicted of gang r*pe, distributing s*xual nudity, filming videos of the s*xual assault of victims without consent, and other charges. He was sentenced to six years in prison, later appealed and it was reduced to five years. He was ultimately released on March 19, 2024.

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In March 2019, former President Moon Jae-in ordered a thorough investigation into the scandal. Several other K-pop celebs like FTISLAND's Choi Jong Hoon, HIGHLIGHT's Yong Jun-hyung, CNBLUE's Lee Jong-hyun, and model Lee Chul-woo, and more also investigated.

In August, a former police officer was convicted for his involvement with the Burning Sun staff and its operation. He was sentenced for associating with the club to cover up the fact that the Burning Sun nightclub allowed minors to enter.

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By January 2020, nine people, including Seungri, were indicted by prosecutors for various offenses. This included mediating prostitution and habitual gambling. Seungri faced multiple charges of prostitution mediation, embezzlement, and illegal gambling in Las Vegas.

In March 2020, former BIGBANG member Seungri enlisted for mandatory military service. His trial was moved to a military court. He denied almost all allegations other than the violation of the Foreign Exchange Transaction Act. Following this, Yang Hyun-suk (former head of YG Entertainment) was fined for gambling-related offences connected to the scandal.

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In December 2020, Yoo In-seok and another member in the scandal were given a suspended sentence after making a guilty plea to mediation for prostitution and other charges of embezzlement. He was the former CEO of Yuri holdings and co-owner of the Burning Sun club.

In August 2021, Seungri was sentenced to three years in prison. He was charged 1.15 billion KRW ($785,039.2) in fines. Seungri's imprisonment was further reduced to 18 months on appeal leading to his release from prison on February 9, 2023.

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In 2024, BBC released a documentary where two journalists recount their investigation into the Burning Sun scandal. It is available on BBC's YouTube channel, covering the victims, crimes, and key details.

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Edited by Divya Singh
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