2 Trillion Won Caddie Fee Market to End 'Cash Payments'... Caddies and Golf Courses Reluctant
Jung-hoon Park: "Confirmed the Government’s Strong Commitment"
Pushing for Amendments to the Fair Trade Commission’s Standard Contract Terms
Aiming to Pass Amendments to the Sports Facilities Act Within the Year
The long-standing practice of paying caddie fees in cash at golf courses in Korea is expected to disappear. If card payments, bank transfers, and simple payments are introduced to the caddie fee market, which totals about 2 trillion won annually, user convenience and transaction transparency are likely to increase significantly. However, there is some discontent among both caddies, who are concerned about disclosing their income, and golf courses, which are reluctant to take on more settlement work.
According to political sources on August 11, Park Junghoon, a member of the People Power Party, met with Kim Daehyun, Second Vice Minister of the Ministry of Culture, Sports and Tourism, on August 10 to discuss ways to improve the system for public golf courses. He confirmed the government's commitment to completing the reforms by the end of the year.
The system of paying caddie fees by card is being actively promoted. This image is not directly related to the article.
View original imageUntil now, most caddie fees at golf courses have been paid in cash, which has caused inconvenience for users. Going forward, once the Korea Fair Trade Commission revises its standard contract terms, payment methods are expected to become more diverse, not only allowing for credit cards but also bank transfers and simple payment services.
Over the past two years, Assemblyman Park has engaged in discussions with government representatives, consumer organizations, and business groups on this issue. This is because public golf courses have been receiving various tax benefits while, in practice, requiring the use of carts and caddies, demanding cash payments for caddie fees, and imposing excessive cancellation penalties, which Park sees as unfair business practices.
Park emphasized, "The diversification of caddie fee payment methods through the Fair Trade Commission's revision of standard contract terms will soon be put into practice," adding, "Within this year, we will also pass amendments to the Sports Facilities Act to root out the 'four major abusive practices' at golf courses."
Jung-Hoon Park, a member of the People Power Party (left), and Dae-Hyun Kim, the Second Vice Minister of the Ministry of Culture, Sports and Tourism, are discussing golf course system reform on the 10th at the National Assembly members' office in the National Assembly Members' Office Building. Courtesy of Jung-Hoon Park's office
View original imageConsumer feedback has been positive. In a survey conducted by Professor Park Gideuk of the Department of Physical Education at Kyungpook National University and the Caddie Research Institute, 94% of golfers said that the tradition of cash-only payments needs to be 'significantly improved.' Another 5.1% answered that improvement is 'necessary,' meaning nearly all respondents supported the system reform. The main reason cited was the inconvenience of having to prepare and pay cash separately.
By contrast, many caddies prefer cash payments due to concerns over income disclosure and increased tax burdens. It is currently estimated that more than 95% of golf courses in Korea still pay caddie fees in cash. A caddie working at a golf course in the Seoul metropolitan area said, "Most caddies are likely to prefer cash payments over card payments."
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The golf course industry is also concerned about an increased workload. This is because, after receiving caddie fees from customers by card, the golf course will then need to settle payments with the caddies, who are individual business operators. One golf course manager in the metropolitan area explained, "Card payments would increase customer convenience, but the settlement work for golf courses would inevitably increase."
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