"Up to 60,000 KRW More Expensive Per Person Than Membership Fees"... Overcharging Reality at Public Golf Courses

Korea Consumer Agency Investigates 170 Golf Courses Nationwide... Cases of Penalty Fees for Cancellations Made 9 Days in Advance

[Asia Economy Reporter Lim Chun-han] Amid controversy over the 'excessive profits' of public golf courses, an investigation revealed that some public golf courses charge more than 60,000 KRW per person, exceeding the average non-member fees of membership golf courses. This phenomenon occurs despite public golf courses receiving benefits such as exemptions from individual consumption tax and reductions in property tax.

On the 25th, the Korea Consumer Agency announced that it surveyed fees and other details of 170 golf courses nationwide operated by 135 businesses from October 28 to November 19 last year, including 85 public and 85 membership courses, and found these results.

According to the Consumer Agency's survey of green fees based on 18 holes, 21 public golf courses (24.7%) charged weekday fees higher than the average non-member fees of membership golf courses, with the highest difference reaching 61,477 KRW. On weekends, 19 public golf courses (22.4%) charged higher fees than the membership courses' non-member average, with the maximum difference being 48,681 KRW.

Public golf courses also showed greater fee variability compared to membership courses. On weekdays, the price difference between the lowest (120,000 KRW) and highest (250,000 KRW) fees for membership courses was 2.1 times, whereas for public golf courses it was 4.2 times (ranging from 60,000 KRW to 250,000 KRW). On weekends, membership courses had a 2-fold difference between the lowest (150,000 KRW) and highest (300,000 KRW) fees, while public golf courses showed a 3.2-fold difference (ranging from 90,000 KRW to 290,000 KRW).

The Consumer Agency explained that, based on their investigation of golf course cancellation policies, 15 courses (8.9%) imposed penalties such as cancellation fees or usage suspensions even when cancellations were made 7 to 9 days in advance. According to the Fair Trade Commission's standard golf course usage terms, cancellations can be made without penalty up to 3 days before use on weekdays and 4 days before on weekends.

Some courses charged cancellation fees equivalent to the full green fee for four players or included cart fees, which consumers cannot be forced to pay, as part of the penalty. Although the standard terms and consumer dispute resolution guidelines require refunds for unused holes in cases of game interruption due to natural disasters or force majeure, 75 courses (44.1%) either did not disclose these regulations or refunded less than the standard.

From 2018 to September 2021, a total of 1,516 complaints related to golf courses were filed at the 1372 Consumer Counseling Center. Among these, unjust or excessive fee charges accounted for 18.5%, the highest proportion, followed by refusal to refund unused fees at 18.3%.

Based on this investigation, the Consumer Agency plans to recommend improvements regarding excessive cancellation fees. The Fair Trade Commission intends to conduct an ex officio investigation into unfair terms at major golf courses during the first quarter of this year.