"Not Even This Bad During COVID": Gyms Facing Their Biggest Crisis Ever

Gym Closures Surpass COVID-19 Levels
Rapid Increase in 'Eat-and-Run' Damages

"The year-end and New Year period is the peak season for gyms, but in my 14 years of operation, I've never faced such difficulties."

Mr. Shin (46), who runs a gym in Suwon, Gyeonggi Province, lamented that his sales in January this year dropped to one-third compared to the previous year. With the number of members sharply decreasing, he is barely able to pay the rent. Mr. Shin said, "If this continues, I think I will have to go through the process of closing down."

Last year, the number of gym closures nationwide soared to an all-time high, marking the greatest crisis ever faced. On the ground, some even say the situation is more difficult than during the COVID-19 pandemic.

According to the Ministry of the Interior and Safety's local administrative licensing data on the 3rd, the number of closures in the fitness center industry last year was 553, an increase of 26.8% compared to the previous year. This is the highest figure since statistics began being compiled in 1990. It even exceeds the numbers from 2020 (430 closures) and 2021 (402 closures), when business restrictions due to COVID-19 were frequent. Already this year, 36 gyms have closed.

In fact, various gym acquisition and transfer communities are flooded with listings of 'no-right gyms' that do not require key money. An industry insider explained, "No-right gyms are difficult to sustain for more than one to two years, so the actual number of gyms that have effectively closed is much higher than what the statistics show."

The sharp increase in gym closures is due to reduced spending on leisure activities amid the economic downturn and intensified cutthroat competition. Mr. Kim (50), who operates a gym of several hundred pyeong in Seoul, lamented, "Since the second half of last year, sales have turned to losses. Rent, electricity, and water bills have all increased," adding, "As the economy freezes, the number of gym members keeps decreasing." The 'dumping discounts' of 10,000 to 20,000 KRW per month offered by chain gyms are dragging down the entire industry.

As more gyms close, 'eat-and-run' damages are also rapidly increasing. Early last month, B Gym in Goyang, Gyeonggi Province, and in November last year, H Gym in Dongtan suddenly closed, prompting registered members to file lawsuits. A member of H Gym said, "I prepaid millions of won for personal training (PT) and suffered losses," lamenting, "The police just tell us to wait."