[Yanolja Research Insights Vol.29] Why Are Golf Courses Seeing Fewer People These Days?

Navigating a Shifting Landscape: A Closer Look at Korea's Declining Golf Industry

The golf industry in Korea is at a curious crossroads.
Despite a steady increase in the number of golf courses, the number of people playing golf has been on a downward trend.
We've put together a quick overview of the key findings from our analysis, revealing a complex interplay of demographic and macroeconomic forces.

Data from the past two years clearly indicates that domestic golf demand has fallen.
This trend began after the pandemic, with the number of golf course users in Korea decreasing by 0.6% in 2024.
This widening gap between supply and demand presents a significant challenge for the industry.

Our findings reveal two primary drivers for this downturn:

One of the major reasons for this decline is demographic shifts.

We've found that the key customer base is the 40s and 50s age group.

Baby Boomers, who once made up a significant portion of the total population and were a major consumer base for golf, are now retiring.

As their income decreases, they are scaling back on expensive leisure activities like golf, which is having a direct impact on demand.

Another significant factor is macroeconomic changes.

We can see that Korea's real GDP growth rate has been on a downward trend for a long period.

This indicates that both potential and actual economic growth have been weakening, which leads to reduced spending on high-cost leisure activities.

Golf, which requires significant time and money, is often one of the first activities people cut back on during economic downturns.

To understand potential future scenarios for the Korean market, we can look at the historical precedent of Japan's golf industry.

Japan experienced a similar pattern of rapid growth followed by decline, driven by challenges like a declining population, an aging society, and slow economic growth.

In response, the Japanese golf industry adapted by shifting its business models and actively seeking new customer bases.

This serves as a valuable case study, suggesting that strategic adaptation is essential for long-term sustainability.

The decline in the Korean golf industry is not a simple issue, but rather the result of a combination of profound demographic and economic shifts.

To navigate this evolving landscape, industry stakeholders must understand these underlying trends and consider innovative strategies to adapt.

For a complete analysis of these findings and a comprehensive look at the future of the golf industry, please refer to Yanolja Research Insights Vol.29.