Gov’t blocks private equity plans to convert golf courses to membership models

Golf enthusiasts play golf at a golf course course in Daegu on June 25. [NEWS1]

 
Private equity funds that acquired nonmembership golf courses in Korea are seeking to convert them into membership-based operations to recover their investments, but their plans remain blocked by a government regulation that prohibits such changes. 
 
The restriction, first introduced in the 1990s to promote public access to golf, is now facing growing opposition from the industry as hindering growth momentum and popularity of the sport.
 
 
A golf course in Gyeonggi, acquired by a fund in 2022, is at the center of the debate. The private equity fund wants to change the course to a membership model in order to repay more than 100 billion won ($70 million) in investment to its shareholders.
 
“This regulation was supposed to expire this year, but the government seems intent on maintaining it,” an official at the golf course said. 
 
Industry groups have submitted formal requests to amend the law. The Korea Golf Course Business Association and seven nonmembership courses filed a petition with the Ministry of Culture, Sports and Tourism early last year, according to golf course operators and local governments.
 
The petition asked the ministry to revise the enforcement decree of the Act on the Installation and Utilization of Sports Facilities, which bans nonmembership courses from converting to membership-based operations.
 
More than 60 golf course operators nationwide also submitted written statements requesting that the restriction be lifted.
 

People walk through Anyang Country Club in Gunpo, Gyeonggi on May 7. [NEWS1]

 
In Gangwon, local authorities have reviewed proposals from three nonmembership golf courses seeking to make the transition. As of now, the regulation under Article 12, Clause 1 of the enforcement decree continues to prohibit such conversions.
 
Golf courses in Korea fall under three categories: membership, nonmembership and public.
 
Public courses are subject to a green fee cap — 188,000 won on weekdays and 247,000 won on weekends — and receive tax benefits. Nonmembership courses face no pricing cap but pay almost the same level of tax as membership-based courses.
 
The rule dates back to 1994, when about 80 percent of golf courses in Korea operated as membership clubs. To promote accessibility, the government introduced a policy that allowed membership courses to become nonmembership courses, but banned the reverse.
 
The market has since shifted to almost the reverse. As of 2025, nonmembership courses now account for 70 percent of all golf courses in Korea, while membership courses make up just 30 percent. 
 
As of Jan. 1, there were 372 nonmembership golf courses nationwide, compared to 153 membership-based ones, according to the Korea Golf Course Business Association.
 
“The goal of making golf more accessible to the public has already been achieved,” an official at a golf course management company said. 
 
Industry leaders say the regulation limits business autonomy and worsens financial pressure. Membership-based courses can secure more stable revenue through membership sales and annual dues. Nonmembership courses, by contrast, often rely heavily on loans to finance operations and repay capital.
 
The Ministry of Culture, Sports and Tourism has reportedly expressed concern that lifting the restriction could be viewed as “providing preferential treatment to certain businesses.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM BANG-HYUN, PARK JIN-HO [[email protected]]