Korea National Opera in heavy debt over 2007 fire

Concerns are growing over the Korea National Opera’s struggle to pay over 7 billion won ($6.5 million) in compensation to the Samsung Fire & Marine Insurance for a fire that broke out during a performance five years ago.

According to industry insiders, the KNO has yet to pay any of the 4.8 billion won in principal and 2.2 billion won in interest to the insurance firm 10 months after the Supreme Court ruling that ordered the opera company to pay its insurer. The money exceeds this year’s government subsidy to the company standing at 6.8 billion won and nearly eats up next year’s allotment of 8.3 billion won. 

A fire broke out in the middle of a “La Boheme” performance in December 2007, when an actor accidentally set the curtain on fire instead of the fireplace at the Seoul Arts Center Opera House. It took 20 minutes to extinguish the fire, resulting in damages worth 19.4 billion won. SAC insurer Samsung Fire & Marine Insurance paid out 10 billion for the repair and filed a suit against KNOC to share liability.

A district court in 2010 ruled in favor of the insurance company and the Supreme Court upheld the decision ordering the opera company to pay for 70 percent of the repair charges. The annual interest rate was set at 20 percent, which is now equivalent to 2.6 million won for a day of delay since the district court ruling.

“We are unsure of what we can do at the moment,” said a KNO spokeswoman. “We must set a long-term plan for it,” she added.

By Bae Ji-sook (baejisook@heraldcorp.com)