Scaling Up Despite 55.7% Operating Profit Margins: Golf Courses Add 260 Holes in 10 Years

[Dangerous Greens, the Real Face of Golf Courses] - ②

Expanding existing courses instead of securing new sites
Expansion projects aimed at maximizing profits continue
Investment fervor persists even after the COVID boom ends
Economic viabi

Golf courses that generate more than half their revenue as operating profit are continuing to scale up. Last year, the average operating profit margin among the 10 most profitable public golf courses in South Korea reached 55.7%. Facility expansions have also been brisk, with 260 holes added at 28 existing golf courses over the past 10 years. Maintaining high profitability even after the COVID-19 boom ended, these courses are seeking additional revenue by adding holes on their existing land.

Seo Seoul CC ranked first among membership golf courses last year, with an operating profit margin of 41.8%. Photo courtesy of Seo Seoul CC.

According to the Ministry of Culture, Sports and Tourism, the Korea Golf Course Management Association and the Korea Leisure Industry Research Institute, South Korea had 527 golf courses this year, including both membership and public courses. Annual golf participation is estimated at 6 million to 7 million people, with 45 million to 50 million rounds played. In other words, the golf industry, which grew during the COVID-19 pandemic, continues to maintain a substantial market size.

The 2026 Leisure White Paper, published by the Korea Leisure Industry Research Institute, highlights golf courses' high profitability. Last year, the average operating profit margin among the 10 most profitable public golf courses was 55.7%. While this was down 2.8 percentage points from the previous year, the courses still generated more than half their revenue as operating profit.

Golfzon County Jincheon CC (27 holes) in Jincheon, North Chungcheong Province, recorded an operating profit margin of 57.8% last year. It acquired Art Valley CC, formerly a membership course, and converted it to a public course. Winchest CC (18 holes) in Anseong, Gyeonggi Province, followed at 57.1%, then Jungwon CC (27 holes) in Chungju, North Chungcheong Province, at 56.4%, and Iksan CC (24 holes) in Iksan, North Jeolla Province, at 56.3%.

High profitability was also evident among membership golf courses. Seoseoul CC (18 holes) in Paju, Gyeonggi Province, operated by the Hoban Group, posted the highest margin at 41.8%, followed by Bora CC (27 holes) in Ulju, Ulsan, at 38.9% and Giheung CC (36 holes) in Hwaseong, Gyeonggi Province, at 37.7%. The average operating profit margin among the top 10 membership courses was 36.6%, down 1.9 percentage points from the previous year.

Golf courses are also moving ahead with adding holes to increase profits. According to figures compiled by the Korea Leisure Industry Research Institute, a total of 260 holes were added at 28 existing golf courses between 2016 and 2026. A total of 45 holes were added in both 2016 and 2021, while 36 holes were added this year. Expanding existing facilities, rather than developing new golf courses, is emerging as a new growth strategy.

Public golf courses have led the expansion drive. Of the 28 courses, 26 were public, adding a total of 242 holes, or about 93% of all new holes. Analysts say these courses face relatively fewer restrictions related to recruiting members and have a lower tax burden than membership courses, making facility expansion more effective in boosting profits.

The growing difficulty of developing new golf courses is also spurring expansions. Rising land acquisition costs, complaints from residents and complex permitting procedures make building a new course a costly and time-consuming undertaking. By contrast, using available land at an existing golf course can reduce development costs while allowing operators to continue using their existing facilities and customer base. This means they can expect additional revenue while reducing the risks associated with new investment.

Seo Cheon-beom, director of the Korea Leisure Industry Research Institute, said, "Adding holes at an existing golf course is a measure to maximize profitability by making use of available land." He added, "A shortage of golf courses, difficulties in acquiring land, complaints from residents and lengthy permitting procedures are also reasons courses choose to expand."

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