Receiving 1 Trillion Won in Tax Benefits... Public Golf Courses Illegally Selling Memberships

Condo and Villa Memberships Sold with Golf Course Tax Benefits

Unfair Operations Take Only the Advantages of Membership and Public Courses

Local Governments Lacking Oversight Due to Insufficient Information

They receive tax benefits but operate like membership clubs. There are criticisms that some public golf courses, which receive over 1 trillion won in annual tax benefits from the government to popularize golf, are in fact operating as membership clubs by selling condo and villa memberships. Critics argue that these golf courses are enjoying the advantages of membership clubs—such as recruiting members, priority reservations, and green fee discounts—while still paying reduced taxes applicable to public courses.

The mid-sized golf course Namhangang Espark Country Club sparked controversy by selling villa memberships linked to the golf course. Photo by Namhangang Espark Country Club homepage

According to a report released on July 6 by the Korea Golf Consumer Agency titled "The Reality of Improperly Operated Public Golf Courses," it was found that among public golf courses receiving tax reductions, approximately 20 nationwide are either selling condo or villa memberships linked to golf course usage or are running similar membership systems.

Public golf courses are granted various tax benefits in exchange for limiting member recruitment, in order to encourage wider public use. However, the Korea Golf Consumer Agency claims that some golf courses are operating in a manner similar to membership clubs by utilizing accommodation memberships or financial loan agreements.

The Korea Golf Consumer Agency pointed out, "It is against both the intent of the public golf course system and the principle of tax equity for public golf courses enjoying tax reductions to recruit condo or villa members and provide them with green fee discounts and booking privileges."

Membership golf clubs are allowed to recruit members but are subject to higher taxes during construction and operation. The property tax rate is 4%, and each customer pays an individual consumption tax of 21,120 won. In contrast, public golf courses face a property tax rate of only 0.2–0.4%, and the individual consumption tax is waived. The government’s estimated tax support for these courses last year was 1.148 trillion won.

The problem is that some public golf courses are circumventing the regulations that prohibit member recruitment, yet still enjoying all the tax benefits. This has created a structure where they gain both the advantages of membership clubs and the benefits of public courses.

A prime example is Namhangang Espark Country Club, which opened in Wonju, Gangwon Province in April. The Korea Golf Consumer Agency claims that this course operates as a 27-hole public golf course while selling villa memberships for 100 units, priced between 1.2 billion and 2.4 billion won. The agency also stated that some of the accommodations included in these membership packages have not been officially approved.

Espark Country Club in Miryang, Gyeongnam Province, was also found by the Board of Audit and Inspection to have issues with its financing methods. Although the business plan was approved on the basis of loans from financial institutions, in reality, the funds were raised through financial loan agreements with individuals and corporations. The Korea Golf Consumer Agency views this as de facto membership sales. Because green fee discounts were offered in return for the loans, the agency explains that this, in effect, constitutes a similar membership system.

Seorak Sunvalley Country Club in Goseong, Gangwon Province, was also cited as a case where golf course benefits are provided to condo members. Regular condo members are exempt from green fees, while family members receive a 50% discount. According to the club’s audit report, as of the end of last year, the total amount collected from condo sales reached 218.6 billion won.

Seorak Sunvalley Country Club, a mid-scale golf course, was found to offer benefits to the golf course while selling condos. Photo by Seorak Sunvalley Country Club website

Seo Cheonbeom, president of the Korea Golf Consumer Agency, stated, "If these improper practices at public golf courses are left unchecked, it could undermine trust in the entire system." He added, "Local governments with supervisory authority should conduct investigations, issue corrective orders, and consider strong administrative actions such as business suspensions if the orders are not followed." He also emphasized, "The government should implement supplementary measures, such as imposing higher taxes on public golf courses that sell condo or villa memberships."

This content was produced with the assistance of AI translation services.