Ministry of Economy and Finance Tax Reform Enforcement Decree Amendment Faces Objections
"Forcing Golf Courses to Convert to Public Type"
The Korea Golf Course Management Association has voiced that the government should abolish the individual consumption tax imposed on non-membership golf courses.
In a statement released on the 20th, the association argued, "Imposing the individual consumption tax on non-membership golf courses, which are already heavily taxed through combined property tax and comprehensive real estate tax, is effectively forcing golf courses that wish to remain non-membership to convert into public-type golf courses."
The association pointed out, "There have been qualitative changes in the standard of living and lifestyle of the public between 1949, when the individual consumption tax was imposed to curb golf courses as luxurious recreational facilities exclusive to a certain wealthy elite, and 2023. Currently, the individual consumption tax has been abolished for all sports facilities except gambling-related businesses, but it uniquely remains for membership and non-membership golf courses, which violates the principle of tax equality."
Earlier, on May 30 of last year, the National Assembly completed amendments to the Act on the Installation and Use of Sports Facilities (체시법), which classified golf courses into membership and non-membership types and designated non-membership golf courses meeting certain usage fee criteria as public-type golf courses.
Subsequently, in November of last year, the Ministry of Culture, Sports and Tourism announced a public notice regarding the designation of public-type golf courses under the amended enforcement decree of the Act on the Installation and Use of Sports Facilities. It stated that public-type golf courses must set entrance fees at least 34,000 KRW lower than membership golf courses to be designated as such under the new classification system.
Accordingly, a new golf course classification system was announced, categorizing courses into membership, non-membership, and public-type golf courses. The association judged that non-membership golf courses that do not convert to public-type are taxed under comprehensive combined taxation for property and comprehensive real estate taxes, rather than the separate combined taxation applied to public-type golf courses, resulting in tax payments exceeding or comparable to those of membership golf courses of the same scale.
Additionally, on the 18th, the Ministry of Economy and Finance revised the enforcement decree of the tax reform plan to impose an individual consumption tax of 12,000 KRW per person on non-membership golf courses, similar to membership courses. Including education tax and special rural tax (7,200 KRW) and value-added tax (1,920 KRW), the total tax amounts to 21,120 KRW.
The association stated, "Imposing the individual consumption tax on non-membership golf courses, whose tax burden has significantly increased, undermines the purpose of restructuring the golf course classification system into membership, non-membership, and public-type." They added, "In reality, the type of golf course is merely a choice based on financing methods, with no physical differences in golf activities or facilities. Non-members (those without membership rights) choose golf courses based on usage fees, time, and accessibility, so differential imposition of the individual consumption tax violates the principle of tax equality."
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