Fire extinguishing axe obtained from the fire hydrant.

And i suppose to Hee-min said "What are you doing there???" because that weird girl is sitting still.

This makes it very interesting because as we know, Hui-min, in the final game, never speaks to any character outside the Dialog Tree Conversation System.

Yeah, but sonnori said all the actors of blood festival screens are placed temporarily. And also any dialogs are. It's not even a stable event.

Is it true that it did not pass Korean censorship? and if its true, how and why?

I don't know why that rumor spreaded but many peoples know Blood festival didn't pass Korean censorship because it was too scary and the game CD has collected and game has changed a lot.

But it's rumor.

The game has changed a lot just because of computer spec problem.

They separated main building part 1 and part 2, many actors are removed, etc.

(Also, sonnori officialy said it's rumor, in remake artbook.)

I assume it's mainly a limitation issue!

1. All buildings were connected and that would cause a huge performance issue, back then and even games today optimize that.
2. It looks like the intended to have 3D Ghosts such as Mi-suk but removed them in the final game for the cheap/but more efficient 2d ghosts.
3. Even though all buildings were connected, the characters look low res (low poly models and low res textures) compared to final.
4. It must have been too scary if it really didnt pass Korean censorship.

Yup, and it doesn't even make a sense that saying it didn't pass Korean censorship, because Blood festival is just early version of White day:ALNS, they did not even finished the game as trying to pass censorship.

+ And also there is another rumor that someone dead while playing beta version of Blood festival, by heart attack.

Wow this is ridiculous, I don't believe anyone would die from a game, it may happen but judging by the videos, hell Blood Festival is very incomplete, even Lady Head Ghost doesn't show up to the player (we see that that they run towards her, instead.) ... uhh.

Yeah... also some peoples believed Blood festival would be so scary & cruel, because they supposed to that Fire axe would knock Mi-suk :OO

And interesting thing : We can see the skybox outside the window.

I guess, There would be separated event place, for Mi-suk ghost event.

Interesting, I expected the Fire Axe to be used to knock someone out too xD

The skybox, you are right but maybe its a typical "debug menu" which allows developers to switch rooms easily (and the room was just loaded, so technically, skybox loads first then building / class room) but if its a separate room then maybe it is indeed a test room / event room.