Exploring the Income and Expense Structure of KLPGA Players

Income includes prize money, sponsorship, and performance-based incentives
Expenses cover participation fees, caddies, and swing coach contracts
9.3% deduction on prize money, comprehensive income tax up to 45%

Golf players earn a lot of money, but their expenses and tax burdens are also significant.

[Asia Economy Reporter No Woo-rae] Golf is a sport where one can enjoy both wealth and fame simultaneously. This is because tournaments with prize money are held endlessly throughout the year. The Korean Ladies Professional Golf Association (KLPGA) Tour had a total prize money of 28.3 billion KRW this year. In the 2022 season, there were 30 tournaments, with an average prize money of 940 million KRW per tournament. 'Prize Money Queen' Park Min-ji earned 1.47792 billion KRW. Fifteen players earned more than 500 million KRW, and 26 players earned over 300 million KRW. In the world of golf, expenses are as high as income. This is the income and expenditure structure of KLPGA Tour players.

The main source of income for golf players is sponsorship money. Players with good performance can secure reliable sponsors. The main sponsor provides the 'funds.' The top players on the KLPGA Tour receive about 1 billion KRW annually in sponsorship money. In addition to the main sponsor, players also sign contracts with sub-sponsors for clubs, golf balls, clothing, shoes, gloves, and more. Incentives based on performance cannot be ignored either. Winners receive an additional 50% of the prize money, the 'Top 5' receive 30%, and the 'Top 10' receive 20% extra.

Players without sponsors must 'go all-in' on prize money. If they advance to the finals, they receive prize money according to their ranking. Winning a regular tour tournament grants 18% of the total prize money. If the total prize money is 1 billion KRW, the winner's prize is 180 million KRW. However, they do not receive the full amount. Deductions include 3% income tax, 0.3% resident tax, and 6% KLPGA special membership fee, totaling 9.3%. The special membership fee, which was 6.7%, was adjusted to 6% in 2015.

Golf players also file comprehensive income tax returns. The tax rates are 38% for income exceeding 150 million KRW up to 300 million KRW, 40% for income over 300 million KRW up to 500 million KRW, 42% for income over 500 million KRW up to 1 billion KRW, and a whopping 45% for income exceeding 1 billion KRW. As income increases, health insurance premiums cannot be ignored either. A KLPGA Tour player said, "Looking at the income structure, the ratio of sponsorship money to prize money is about 7 to 3," adding, "The net income from the amount earned in a year is about 30 to 40%."

Golf players also have many expenses. Caddie fees cannot be ignored. They are calculated weekly, ranging from 1 million to 1.5 million KRW. If a player competes in 30 tournaments with an A-grade caddie, 45 million KRW is needed. But it doesn't end there. Incentives must be given based on performance. It is 10% for a win. Money is also paid when passing the cut or finishing in the 'Top 10.'

Golf tournaments last for four days. Including pro-am and practice rounds, players are at the tournament venue for six days except Monday. Most players attend with their parents. Accommodation, meals, and vehicle maintenance costs are necessary. Each tournament costs about 1.5 to 2 million KRW. As the number of tournaments increases, some players hire professional trainers, costing 60 to 70 million KRW annually. Including the cost of a swing coach further increases expenses.