KGBA, which represents 206 golf course member companies, held its regular general meeting in 2023
Hopes were high for discussions on ways to normalize excessively high golf course fees, but...
The Korea Golf Course Management Association (KGBA, www.kgba.co.kr) is an organization with membership from 206 out of over 500 golf courses nationwide. It includes golf course owners and professional managers among its members. The KGBA is committed to promoting the healthy development of golf course businesses, fostering unity among its member companies, conducting research on golf course operations, providing guidance and supervision, and engaging in promotional activities.
According to reports from Maeil Health, the KGBA held its regular general meeting for the year 2023 at the Crystal Hall of Maison Glad Hotel in Jeju on March 22, 2023. The meeting included approval and resolution of the 2022 business analysis and financial reports, as well as the selection of auditors. There was also a comprehensive report on the status of golf courses nationwide and the number of users in 2023, along with plans for the association's 50th-anniversary commemorative events in 2024.
Many golfers, upon hearing this report, anticipated that the KGBA would discuss measures to normalize the excessively high golf course fees that had arisen during the COVID-19 pandemic at the meeting. They hoped for news of discussions on ways to lower these costs.
Chairman Park Chang-yeol: 'Criticism of Short-Sighted Legislative Policies by Parliament and Government'
The Determination to Reduce Green Fees and Other Measures Promised at Last Year's General Meeting Have Disappeared
However, there was no sign of such determination. Chairman Park Chang-yeol (Gochang CC) promised, 'The regulatory policies proposed by the parliament and the government, which have been shortsighted towards the golf industry that has benefited from the past three years of COVID-19, will bring about another set of side effects.' He further pledged, 'To protect the interests of the golf industry, we will establish the right direction and respond appropriately.' Although the specific regulatory policies proposed by the parliament and the government were not disclosed in the report, I cannot help but point out the level of complacency regarding the impending crisis facing Korean golf courses after COVID-19 in Chairman Park's remarks.
According to G.ECONOMY, at the regular general meeting held on April 24, 2022, at the Harmony Ballroom of InterContinental Seoul COEX, the KGBA re-elected Chairman Park Chang-yeol for the 18th term and performed a demonstration to declare the determination of the golf industry both domestically and abroad. Golfers who read this article watched with keen interest to see what actions the KGBA would take in the future. This was because representatives of the association and member companies, on that day, held placards with slogans such as ▲Reducing green fees ▲Restraining fee increases ▲Environmentally friendly golf courses ▲Safe golf courses ▲Social contribution and activities, while chanting slogans and strengthening resolutions.
Especially regarding the calls for reducing green fees and restraining fee increases, many golfers couldn't help but think, 'Finally, golf courses are waking up.' However, there was no news of any golf courses lowering green fees or other usage fees thereafter. Yet, just 11 months later, at the regular general meeting held in Jeju on March 22, 2023, there was no talk of adjusting usage fees, only criticism of the legislative bills from the government and parliament. So, what was the point of the placard performance at the April 2022 meeting? Was it merely a show to deceive the public, the government, and the golfers?
Was the 'placard performance' at the 2022 meeting a show to deceive golfers?
Emphasis on 'efforts for sustainable development' amidst the crisis post-COVID-19 was viewed skeptically
At the 2022 annual meeting, Chairman Park Chang-yeol emphasized efforts for sustainable development within the golf industry, acknowledging that despite being one of the industries to benefit during the COVID-19 pandemic, golf courses had drawn ire from consumers due to increased green fees and booking difficulties. This highlighted the awareness of the explosive dissatisfaction among golfers regarding the substantial fee hikes during the pandemic period, indicating a sense of impending crisis within the golf industry.
However, it seems that a year later, all determination has vanished. "Expensive golf fees? That's your problem as golfers, not ours!" This attitude implies that simply enduring will suffice as a solution.
As domestic golf course costs became excessively expensive, golfers unable to bear them began diverting their attention to overseas courses once COVID-19 restrictions eased. Particularly, they are flocking to Japanese golf courses, which are only 1-2 hours away by air and much cheaper compared to domestic ones. The greatest advantage of Japanese golf courses is their operation without cart fees and with non-caddie systems. With meals and accommodations included for 18-27 holes, the cost is around 100,000 KRW per day, a cost-effective option unavailable in Korean golf courses.
Discussions on measures such as free carts and optional non-caddie services should have been held at this year's annual meeting
Competition between domestic golf courses charging cart fees and Japanese golf courses without cart fees
In my judgment, KGBA should have thoroughly discussed and announced measures such as free carts and optional non-caddie services at this year's annual meeting with the intention of reducing golf costs. Now, it seems inevitable to engage in a price competitiveness battle between domestic and Japanese golf courses. There is a high likelihood that golfers will either stop frequenting domestic golf courses they used to visit ten times or reduce their visits to just 1-2 times and flock to cost-effective Japanese golf courses.
With 500 golf courses trying to accommodate 6 million golfers, one might be tempted to become complacent, thinking that they won't fail immediately. However, it is anticipated that golf courses in Jeju or remote rural and mountainous areas with poor accessibility will encounter severe management difficulties as local patrons decrease rapidly. If costs are not drastically reduced, isolated golf courses will be the first to suffer. Golfers have expressed anger and frustration at the endless greed shown by Korean golf courses. The "shadow of severe trials" has begun to loom over Korean golf courses.
Today seemed like a call for determination, but ultimately, we observed the behaviors of KGBA, which ended up being a mere "talkfest" or a "showcase." From this, it can be inferred that a dark cloud looms over Korean golf courses. Especially, those who pay lower taxes and face similar fates to private golf courses in terms of golf costs are waiting.
The Story of Maudae’s life and golf continues.