"Corporate Card Spending at Golf Courses Nears 2 Trillion Won Since COVID-19"

'Current Status and Development Plans of the Korean Golf Industry' Seminar
KRW 1.916 Trillion in 2021
"Corporate Card Expense Deduction Scope Should Be Reduced"

It has been investigated that the amount spent using corporate cards at golf courses during the COVID-19 period approached 2 trillion won. This is pointed out as a social ill caused by the perception of golf as a form of entertainment culture, where spending more money at golf courses is considered to mean better hospitality.

On the 10th, Seocheon Beom, director of the Korea Leisure Industry Research Institute, estimated the amount spent using corporate cards at golf courses in 2021 during the 'Current Status and Development Plans of the Korean Golf Industry' held at the National Assembly Members' Office Building.

According to the Korea Leisure Industry Research Institute's survey, the amount spent using corporate cards at golf courses, which was around 1 trillion won in 2011, surged to 1.916 trillion won in 2021. This is a 48.6% increase compared to 1.2892 trillion won in 2019, just before COVID-19.

The proportion of corporate card spending in total golf course sales dropped to 26% in 2018, the year following the implementation of the so-called 'Kim Young-ran Act (Improper Solicitation and Graft Act),' but rose again after COVID-19. In 2021, the share of corporate card sales at golf courses was surveyed at 27.5%.

In fact, as of October last year, the average caddie fee per team was 147,000 won for membership courses and 143,000 won for public courses. These figures represent increases of 17.6% and 16.3%, respectively, compared to two years ago. The average cart fee per team was about 97,000 won for membership courses and 91,000 won for public courses.

Director Seo argued that the government should reduce the scope of tax-deductible expenses for corporate card spending at golf courses. According to the Korea Leisure Industry Research Institute, if the scope of tax-deductible corporate card expenses is reduced, about 5.64 million golfers could benefit. As the sharply rising green fees and food and beverage prices decrease and weekend booking difficulties ease, the amount passed on to golfers will be reduced.

Director Seo said, "To break the high-cost structure, it is necessary to reduce entertainment golf and gradually lower the property tax rates and surtax rates on membership golf courses. Otherwise, the high-cost structure of golf courses will continue for a considerable period."