Lee, 29, who ran the club where Big Bang member Seungri was an executive director, did not answer any questions as he entered the Seoul Central District Court.
Lee is suspected of distributing drugs at the club, which he denies. Lee was named as a criminal suspect following a positive drug test.
The decision on the arrest warrant is expected late Tuesday night or Wednesday morning.
The police are expanding the probe into the embattled club at the heart of snowballing allegations encompassing sexual assault, filming and distribution of illicit sex videos, drug use and distribution, and corrupt ties between its staff and the police.
A total of 40 people were booked on drug-related charges, 14 of them suspected of taking drugs or distributing them at the Burning Sun. Three of the 40 have already been arrested.
Big Bang member Seungri, 28, faces a number of allegations, including procuring prostitutes for potential investors and gambling overseas. He was questioned as a criminal suspect on Friday and is now seeking to postpone enlisting in the military service. He had earlier said he would be joining the military on March 25.
A senior police officer, surnamed Yoon, is suspected of pulling strings for the club and another Seungri-owned bar, Monkey Museum, to have complaints about illicit activities at the establishments dismissed. Yun was booked for leaking state secrets, along with two other police officers.
Yoon was mentioned several times, referred to as the “police chief,” in the online group chat involving Seungri, scandal-ridden singer-songwriter Jung Joon-young and FT Island member Choi Jong-hoon, among others.