S.Korea's golf course market doubles in value over 10 years

The value of South Korea's market golf course market now equals 98.5% of Japan's.

The Korea Leisure Industry Institute (KLII) on Thursday released a report on the comparison of the two countries' golf course sectors, saying the Korean market last year was worth 8.5 trillion won ($6.5 billion) including fees for caddies. The scale is 98.5% of the Japanese market's 8.6 trillion won.

The size of the Korean market for golf courses thus skyrocketed 216% over a 10-year period from 3.9 trillion won in 2011 to 8.5 trillion won last year. The value of Japan's market, however, declined from 922 billion yen ($6.8 billion) to 834 billion yen over the same period. The Korean golf course market excluding caddy fees was valued at 6.9 trillion won last year.

More than 90% of golf courses in Japan have a "no caddy system," as caddy fees are considered part of golf course sales since caddies are full-time employees. In Korea, however, most courses have a caddy companion system and related fees are excluded from golf course revenue.

Last year, Korea's golf population reached an estimated 5.64 million, overtaking Japan with 5.60 million for the first time. In Korea, 10.2% of people age 13 or older played golf, and 5.7% of the Japanese population age 15 or older did so. The difference is striking since Japan has a far higher population of 125.5 million to Korea's 51.7 million.

The weekday green fee at public golf courses in Korea was 173,700 won as of May last year, 3.1 times that in Japan of 5,621 yen ($41.4). Such fees from 2011-21 rose 57.8% in Korea but fell 14.7% in Japan. If caddy and cart fees are added, both nations would have an even bigger gap in green fees.

KLII Director Seo Chun-bum said, "The weekday fee for a person to use a public golf course in Korea was 230,000 won in May last year, 3.9 times higher than 58,800 won in Japan presuming provision of a caddy," adding, "Korea's golf population has surpassed Japan's but for the sport to be truly popular here, lower green fees and expansion of the caddy selection system are needed."

Write to Su-Young Jo at delinews@hankyung.com