KB Financial "10,000 Gyms... Continued Growth Possible in the 'Dumbbell Economy' Era"

Approximately 9,900 Fitness Centers Operating Nationwide
Half Located in Seoul and Gyeonggi Province

Average Operating Period of Fitness Center Closure Certificates

[Asia Economy Reporter Park Sun-mi] There are approximately 9,900 fitness centers operating nationwide, with half of them concentrated in Seoul and Gyeonggi Province.

According to the "Fitness Center Status and Market Conditions" report released on the 11th by KB Financial Group as the fourth installment in its self-employment analysis series, as of July, about 9,900 fitness centers (based on Ministry of the Interior and Safety statistics) are in operation nationwide. The number of fitness centers has increased by about 54% over the past 10 years.

The number of newly established fitness centers peaked at 1,153 in 2003, then declined before returning to an upward trend starting in 2015. Following the early 2000s body-building craze and recently secured leisure time due to the 52-hour workweek, the popularity of fitness centers is rising once again.

The number of fitness centers in Seoul is 2,690 and in Gyeonggi Province 2,207, with these two regions accounting for 49.6% of all operating locations. Seoul has the highest number of fitness centers per population, with 2.8 centers per 10,000 people.

The average operating period of fitness centers that closed over the past 10 years is 10 years, and the closure rate last year (number of closures that year/number of stores the previous year) was 7.7%. This closure rate is lower than other industries such as PC rooms (15.7%) and coffee shops (14.4%), which is attributed to the membership-based business model and the high entry barriers due to the need for specialized knowledge and certifications in the fitness industry.

Recovering from the COVID-19 Crisis
"Continuous Growth Possible"

2019 Business Opening and Closing Rates by Industry

Fitness centers were also severely impacted by COVID-19 but are now showing signs of recovery. The number of closures in February and March of this year, when the impact was most severe, was 66 and 69 respectively, up from 43 and 54 in the same months last year. However, closures from April to June (139) decreased compared to the same period last year (176).

The average monthly sales of fitness centers this year are also recovering. Although sales declined after January, before the COVID-19 impact, recovery began from April as the number of confirmed cases decreased. Sales increased from a low of 19.79 million KRW in March to 38.54 million KRW in June.

KB Financial expects that while short-term damage to fitness centers due to the resurgence of COVID-19 is inevitable, growth will recover as the situation stabilizes. Additionally, consumption related to health and fitness, especially among the millennial generation, is increasing, indicating the possibility of continuous growth for fitness centers.

Oh Sang-yeop, a research fellow at KB Financial Management Research Institute, explained, "The millennial generation has a stronger desire for self-expression compared to older generations, shaping their bodies through exercise and sharing their photos and workout information on personal spaces like SNS. Furthermore, with the implementation of the 52-hour workweek system enabling work-life balance, leisure time after work has increased, leading to more time spent on physical activities."

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