Firehose Investment Association Files Bankruptcy Petition Against Skonec Entertainment

Firehose Investment Association has filed a creditor bankruptcy petition against Skonec Entertainment, a KOSDAQ-listed company.

Firehose Investment Association announced on the 13th that it had submitted a bankruptcy petition against Skonec Entertainment to the Seoul Bankruptcy Court.

Skonec Entertainment was established in April 2002 and listed on the KOSDAQ market on February 4, 2022. Its main businesses include software development and supply, as well as content license sales.

Previously, on the 7th, Skonec Entertainment disclosed that it had received a "disclaimer of opinion" from its external auditor regarding its financial statements for the 2025 fiscal year. The audit report released on the same day stated that sufficient and appropriate audit evidence could not be obtained regarding investment property and other equity acquisitions, the outflow of funds related to subsidiaries, and the appropriateness of impairment loss recognition.

Firehose Investment Association stated that it holds 1 billion won worth of the 5th convertible bonds issued by Skonec Entertainment. The association determined that the disclaimer of opinion constituted grounds for the loss of the benefit of time, and therefore demanded immediate repayment from the company on the 7th.

In response, Skonec Entertainment CEO Park Woncheol reportedly refused to repay the debt, stating, "The company does not have any funds left to make the repayment."

On the same day, however, Skonec Entertainment separately disclosed that it had acquired the entire amount of its 6th convertible bonds, totaling 5,010 million won, ahead of maturity using its own funds, for approximately 5,016,735,089 won. Firehose Investment Association argued that this constituted "preferential repayment," as the company postponed repayment to general creditors while prioritizing payment to a specific creditor, and cited this as a main reason for the bankruptcy filing.

Separately, Firehose Investment Association also announced that it had secured evidence related to allegations of fund misappropriation by company management and unfair stock trading by related parties. The association added that it plans to proceed promptly with criminal complaints for embezzlement, breach of trust, and violations of the Capital Markets Act after organizing the relevant materials and completing a legal review.

A representative of Firehose Investment Association stated, "This bankruptcy petition will proceed according to the procedures of the Seoul Bankruptcy Court, and we will continue reviewing additional materials independently of the court proceedings."

This content was produced with the assistance of AI translation services.