By Jane Han
Staff Reporter
A 2,000-won hardboiled egg that local golfers snack on is a micro but accurate representation of the over-the-top pricing reality of South Korea's golf courses.
``I spend at least 300,000 won each time I go for a round of golf,'' said Kim Haeng-yul, a 56-year-old who runs his own business. ``Leisure doesn't seem to come at a cheap price here.''
The cost breakdown shows that average green fees range from 210,000-270,000 won, caddy fees hover around 100,000 won and other expenses including renting carts, buying food and drinks amount to about 50,000-100,000 won.
Last year's KOTRA data shows that Seoul is ranked as one of the most expensive cities to golf in, with an average green fee of $171, more than double that of Los Angeles ($90), New York ($70) and Hong Kong ($80).
This keeps foreigners, who are more accustomed to affordable prices, away from the green.
``I used to golf three times a week in the states,'' said Michael Conforme, the CEO of GCT, a global human resources firm, ``but here, I go once in a blue moon.''
So what makes the stick-and-ball game so out of reach here?
Having long been branded as a luxurious activity for the privileged, golf is more than a sport here, says Oh Dae-gun of the Korea Golf Association (KGA).
``If you look at the cost of memberships, you'll understand that it's more than `just a sport,''' he said, adding that golf memberships have been a rewarding money-making resource for many investors.
He explained that membership prices at golf courses in high demand constantly go up, so many buyers ``purchase and sell the privilege like stock.''
Among 260 golf courses nationwide, some memberships are offered at a friendlier price of less than 50 million won, while there are plenty that go beyond one billion won ($1 million).
``Location is one of the most important price setters,'' said Seo Chun-bum, the head of Korea Leisure Research Institute, explaining that the closer a course is to Seoul, the more expensive it gets.
He forecast, though, that membership prices will start falling in about five years as approximately 200 new golf courses are set to open for business by 2010. Golf courses on Jeju Island are struggling to make ends meet as visitors are falling and country clubs are overcrowded.
Another factor is the growing number of outbound golfers, says Kim, explaining that the number of local players was dropping despite the growing number of golfing population.
``You travel one hour or two out of Seoul and there are tons of cheap and excellent courses,'' he said. ``So why should people golf here?''
KGA data shows that there are currently about three million domestic golfers, of which some 1.3 million people traveled overseas last year for golfing purposes.
``Korean golf courses must figure out a way to stop these people from flying overseas,'' said Kim, adding that cost adjustments would be a surefire way.
Industry sources say this could happen only with the government's support, as the tax burden is directly transferred to golfers. Strategy-Economy Minister Kang Man-soo hinted at lowering heavy taxes on golf courses and golfers. It is estimated about 32 percent of green fees are tax. Golf course owners have to pay huge property tax each year. Golf membership fees could rise by 32-36 percent each year as sellers of memberships pay the same rates in capital gains taxes.