Record 577 Gyms Closed Last Year...Concerns Rise Over Prepaid Membership Losses

531 Gyms Closed Nationwide as of Mid-September This Year
Junho Jeong: “Will Push to Restrict Registration of Fraudulent Operators”

It has been revealed that the number of gym closures across the country last year reached its highest since statistics were first recorded. As of mid-September this year, over 500 gyms have also shut down. With cases continuing to emerge of operators selling long-term memberships and personal training (PT) session packages in advance and then disappearing, concerns are growing about losses for customers who pay up front.

According to Junho Jeong, a member of the National Assembly's Culture, Sports and Tourism Committee from the Democratic Party of Korea, who analyzed the Ministry of the Interior and Safety’s report on “National Fitness Center Business Permits and Closures,” gym closures reached 577 in 2025, the highest number since official records began in 1990. This figure surpasses the 432 closures in 2020 and the 404 closures in 2021, during the years most severely affected by COVID-19.

Assemblyman Junho Jung of the Democratic Party of Korea. Courtesy of Assemblyman Junho Jung's office

As of mid-September 2026, 531 gyms had already closed this year. Assemblyman Jeong projected that, if the current trend continues, the number could surpass last year’s record. As a result, direct and indirect incidents of customer losses are also on the rise.

According to examples provided by Assemblyman Jeong’s office, in August 2026, one gym company promoted a major discount event to encourage customers to purchase two-year memberships and PT passes in advance, only to abruptly vanish. In July 2024, pilates studios in Munheung-dong, Buk-gu, and Usan-dong, Gwangsan-gu of Gwangju received approximately 250 million won in advance tuition payments before closing down, resulting in hundreds of customer casualties.

Claims for relief related to gyms, pilates, and yoga use have also increased compared to 2021.

According to an attached table from the Korea Consumer Agency reviewed by Assemblyman Jeong, claims filed related to these three industries rose from 3,224 cases in 2021 to 4,328 last year. Specifically, in 2025, there were 3,154 claims involving gyms, 998 for pilates studios, and 176 for yoga centers. The total amount of officially filed loss claims from 2018 through June 2026 stands at approximately 29.16408 billion won.

However, Assemblyman Jeong pointed out that the industry estimates the actual amount of losses at over 291 billion won. He further explained that less than 10% of affected individuals report their losses to authorities or the consumer agency.

In response, Assemblyman Jeong announced plans to push for institutional reforms to better protect pre-paid customers. The proposed amendment would require owners of fitness businesses who receive more than two months’ subscription fees in advance to purchase surety insurance, and would restrict those who engage in “hit-and-run” operations from registering new fitness businesses for a certain period.

Assemblyman Jeong stated, “The record-high number of gym closures shows that consumers with pre-paid memberships are that much more exposed to the risk of losses.” He emphasized, “Taking advantage of victims’ reluctance to file criminal or consumer claims, fraudulent operators systematically collect members in one region, close the gym, and then repeatedly open and close businesses in other areas, perpetuating ‘hit-and-run’ scams nationwide.”

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