Soaring Exchange Rates Cause Golf Equipment Prices to Scream

August Golf Equipment Import Price Index Rises 7.9%
Drivers Previously Sold for 700,000 Won Jump to 850,000 Won

With the surge in exchange rates causing import prices of golf equipment to rise, consumers are expected to face increased financial burdens.

[Asia Economy Reporter Choi Taewon] The soaring exchange rate is also causing the prices of imported golf products to fluctuate.

According to the industry on the 30th, the won-dollar exchange rate surpassed 1,400 won per dollar for the first time in 13 years and 6 months, and the prices of imported golf products sold in the market have also been rising.

According to the import price index for August (provisional figure based on the Korean won, 2015 level 100) announced recently by the Bank of Korea, golf products rose 7.9% compared to the previous month.

For example, a driver sold for $599 on the official Titleist website could be purchased for around 700,000 won at the beginning of the year when the exchange rate was in the 1,100 won range per dollar. However, due to the sharp rise in the exchange rate, this price has increased to about 850,000 won, requiring payment of more than 20% higher.

According to a representative of a branch of Golfzon Market, one of the largest golf specialty stores in Korea, "The price of the TSR driver released last week has been raised to 820,000 won," adding, "Although the increase is partly due to it being a new product, the exchange rate seems to have been reflected to some extent."

At a golf shop in Jung-gu, Seoul, a TaylorMade Stealth Steel iron set is also being sold for 1,400,000 won, about 100,000 won higher than at the beginning of the year.

An official from a golf product import company said, "I cannot specify details, but it is true that most product prices have increased due to the rise in the exchange rate," adding, "It is an unavoidable situation from the importer's perspective."

The industry expects that price increases will become more prominent around the end of the year when new product launches are in full swing. New products are generally priced about 10% higher than existing ones, but this year, the increase is expected to be even greater due to the rising exchange rate.

A Mr. A, who runs a golf shop in the Wangsimni area of Seongdong-gu, Seoul, explained, "Products that were stocked previously tend to be less sensitive to exchange rate changes in their pricing. However, when new products from brands like Titleist or Ping are imported soon, the rise in exchange rates will be reflected more sensitively."

Following the golf boom after COVID-19, imports of golf products have also increased significantly, and there are predictions that the so-called golf trade balance will worsen further due to the rising exchange rate.

According to the Korea Customs Service, as of the end of October last year, the import value of golf products was $610 million (approximately 802.9 billion won), up 29.3% compared to the same period the previous year. On the other hand, during the same period, the export value of golf products was $90 million, about 15% of the import value.

The industry consensus is that golf product prices are unlikely to decrease in the near future. It is estimated that the high exchange rate trend will continue for some time, and even if the exchange rate falls later, prices are unlikely to drop easily.

According to a survey on 'Exchange Rate Outlook and Corporate Impact' released by the Federation of Korean Industries on the 25th, companies expect the won-dollar exchange rate to average in the 1,400 won range until the end of the year. A Golfzon Market representative said, "Although prices have risen due to the exchange rate, the possibility of prices dropping again once they have risen is low even if the exchange rate falls."