South Korea's membership golf courses paid close to 600 billion won ($430 million) in taxes last year, according to a research report.
Membership courses shouldered 597 billion won in total taxes in 2025, including 230 billion won in property tax, 271.2 billion won in value-added tax and 95.8 billion won in corporate tax, the Korea Leisure Industry Institute said in a recent report titled "The Current State of the Membership Golf Course Industry." That works out to 3.1 billion won per 18 holes.
Individual consumption tax paid by golfers at membership courses came to 331.1 billion won last year. "The individual consumption tax is borne by golfers, but it weakens the price competitiveness of membership courses, reducing their ability to draw customers and hurting profitability," the institute said. "The tax gap between membership courses, which face a heavier tax rate, and public courses, which are taxed at the standard rate, is estimated at 40,000 won per person in green fees."
The number of membership courses has been declining since 2013. At the end of 2012 there were 228, more than the 210 public courses, but the figure has fallen steadily since 2014 to 153 at the end of last year, or 27.3% of all golf courses. Visitor numbers at membership courses also fell below those at public courses starting in 2017, and membership courses accounted for 30.9% of all rounds played last year.
As of the end of last year, membership courses had average capital of 10.1 billion won, based on 104 courses, while public courses averaged 18.7 billion won, based on 165 courses — 85.2% higher.
Under the Local Tax Act, membership golf courses are subject to a property tax rate of 4.0% of the assessed tax base, while public courses pay the standard rate of 0.2% to 0.4%.
"Membership courses face a heavier tax rate, but they also had the benefit of being able to recruit members," said Suh Chun-beom, head of the Korea Leisure Industry Institute. "Since the mid-2010s, that benefit has been diluted, and we need to reconsider whether it is right to impose punitive property taxes on these courses. The government should gradually lower the punitive property tax rate on membership golf courses."
