No Need for Multi-Billion Won Memberships... Cost-Effective 'Memberships' Gain Popularity

Use Dozens of Golf Courses at Preferred Rates Without Booking Stress
Membership Fee Refunds and Usage Frequency Vary from Millions to Tens of Millions
Reservations Matching Desired Area and Time Slot Are Not Easy

A view of Crystal Valley Country Club, a prestigious private golf club where booking is possible with a golf membership.
[Image source=Yonhap News]

[Asia Economy Reporter Choi Taewon] As the number of golf enthusiasts surges, booking golf courses has become as difficult as catching stars in the sky. It is not only hard to secure the desired region and time slot, but making a reservation itself is challenging.

Amid the persistent booking difficulties, a recently popular solution is the 'Golf Membership' service.

A golf membership is a type of booking intermediary service where green fees are prepaid. By simply joining, members can use anywhere from several dozen to nearly 200 golf courses at preferential rates. Each company operates exclusive reservation offices for members and offers relatively cheaper rates compared to general bookings.

Cheaper than Memberships but Access to Various Golf Courses

Typical 'golf memberships' are a kind of bond, representing a 'right to use specific facilities.' Members provide financial support during the construction of golf course facilities and gain the right to use them once completed. When withdrawing from membership, the entrance fee paid at joining is refunded. Since it is classified as an asset, taxes are imposed during acquisition, holding, and transfer stages.

On the other hand, memberships are simply service usage fees.

The biggest attraction of memberships is the ability to use various golf courses. This differentiates them from memberships that allow access to only specific golf courses. For example, as of October 2022, one golf membership product in the market allows access to 184 golf courses nationwide, including Hanlim Yongin CC in Yongin, Gyeonggi Province, Jens Field CC in Eumseong, Chungbuk, and Lotte Skyhill CC in Jeju.

There are also products that allow access to overseas golf courses. Besides a few partnered overseas golf courses, if members specify the desired country, region, and time, the company contacts local golf courses to connect members at reasonable prices.

Memberships offer relative freedom from booking difficulties. When members apply with their preferred region and time slot, the reservation office finds and guides golf courses that meet the conditions. This eliminates the need to experience the 'booking chaos' where prime time slots sell out instantly upon accessing the site.

Various Options Available Including Refundable and Deductible Types

A List of Benefits for a Popular Golf Membership Product

Golf membership products generally provide a certain number of bookings per month during the subscription period. Although it varies by company and product, most subscription periods range from 2 to 5 years.

Memberships come in various types depending on whether the joining fee and entrance fee are refundable.

For example, a premium golf membership product in the market with a joining fee of 150 million KRW allows four unnamed users to use it for 5 years. The monthly usage frequency is twice on weekends and once on weekdays. The green fees borne are 90,000 KRW on weekdays and 120,000 KRW on weekends. After the term ends, the full entrance fee is refunded.

The relatively affordable deductible type has an entrance fee of 20 million KRW. Weekday green fees are waived, and weekend fees are 50,000 KRW, which is cheaper than the premium membership. However, only the difference from the actual green fee is deducted from the entrance fee. The subscription period is 2 years, allowing four unnamed users. Refunds of the remaining entrance fee upon expiration are not possible, but additional use is allowed through free membership period extensions. Monthly usage is limited to 4 times, and total bookings are capped at 40 teams during the period.

Recently, golf memberships with a postpaid system have also been introduced. One golf membership company launched a membership service charging monthly reservation fees and booking fees without an entrance fee. They charge about 1.5 million KRW monthly fixed reservation fees and provide booking services at preferential prices twice on weekdays and twice on weekends.

High Satisfaction but Company Trustworthiness Should Be Carefully Considered

Number of Consumer Consultation Requests Related to Golf Memberships in the Past 4 Years

Satisfaction with golf memberships is relatively high.

A CEO of a small business, Mr. A (57), said, “Even memberships were hard to book, but after switching to a membership service, bookings go smoothly and the burden of green fees and other costs has decreased, so I am quite satisfied.”

However, it should be considered that perfectly matching bookings to one’s preferences is difficult. Since memberships secure a certain reservation quota from golf courses, it is hard for the location and time to fully align with consumer demands.

As membership services increase, related disputes are also on the rise.

According to the Korea Consumer Agency, the number of consumer consultation requests regarding golf memberships has been increasing over the past four years: 789 cases in 2019, 1,039 in 2020, and 1,208 in 2021. As of the end of September this year, there have been 982 cases.

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