By Kang Seung-woo
In Korea, there are few sports that are loved by as many as they are hated by others.
Extolled as one to put Korea on the world athletic map, impressive performances by local golfers on the PGA and LPGA Tour, golf is often lauded, while criticized as a synonym for extravagance for its exorbitant costs. Now, golf is being targeted as the main culprit of a waste of electricity.
The government has banned outdoor lighting on golf courses in its efforts to deal with surging crude oil prices, while golf circles are strongly opposing the energy saving measure, calling it “shortsighted.”
The forcible blackout came after the Ministry of Knowledge Economy raised its energy alert level to “caution” from “concern” on Feb. 27 amid rising international oil prices following unrest in Middle Eastern countries. Starting from March 7 after a seven-day grace period, the government is set to fine businesses and organizations breaking the regulations up to 3 million won ($2,772).
The ministry said that if crude oil prices stay below $100 per barrel for five days, it will lift the ban. As of Wednesday, the price of Dubai crude oil, the nation’s benchmark, was traded at $108.22 per barrel.
According to the measure, outdoor lighting including neon signs for golf courses, department stores, large-sized retailers and car dealerships, as well as decorative lighting for apartments and commercial-residential buildings should be switched off after midnight. Gas stations will be obliged to use half of their normal lighting.
Right after the announcement of the energy-saving plan, the government met with strong protests from the golf industry amid rising concerns over a decline in profits.
“Since March, when the government came up with the measure, golf courses across the nation have seen their monthly profit drop by 10 percent to 20 percent,” said Cho Chang-kee, secretary general of the Korea Public Golf Course Association (KPGCA).
According to the KPGCA, golf courses are expected to suffer a 155.7 billion won ($143.86) drop in earnings on a yearly basis due to the lights-out regulation.
Sky 72 Golf Club, which has topped the list for the most lucrative golf club for five straight years, suffered a loss of 630 million won in March, with its annual deficit likely to reach around 14.3 billion won.
Cho said that the government’s action is an anti-business decree, which may result in them shutting down.
“The regulation stipulates that department stores have only to turn off external lighting after closing, while karaoke bars are obliged to turn off their outside lights after 2 a.m., neither of which heavily affects their business. However, external lighting is necessary for the operation of a golf course at night.
“In general, 10 percent of earnings turn into operating profit, but considering the aforementioned 10 percent to 20 percent fall, the ban on nighttime golf will put most of the country’s golf clubs into the red.”
“The measure is an excessive regulation pushing golf courses to the verge of bankruptcy.”
Korea has gone through a few oil price inflations, but it has never stuck to such a mandatory rule.
According to a high-ranking official of the Korea Golf Course Business Association (KGCBA), the association has petitioned the government to ease the edict, allowing them to use lights one hour before sunrise and until two hours after sunset, but to no avail.
The KPGCA also says the blackout policy will cost a large number of jobs at the golf courses.
According to its statement, under the assumption that country clubs can offer golf at night for eight months a year, the continued lights-out will force golf clubs to fire about 2,600 people working there per day, with some 630,000 on a yearly basis, which it insists is against the Lee Myung-bak administration’s efforts to create jobs.
A country club located in Gyeonggi Province, which now has 160 regular employees, has recently reached the conclusion that its workers will go on unpaid leave in rotation, while another in North Chungcheong Province has reduced its staff for course management from 30 to 10.
“As country clubs cannot accommodate players at night, those who work there including caddies, maintenance staff and temporary or daily workers face falling revenue and an employment crisis. Some of them have been fired or changed jobs,” said a caddie, who works at a golf club in Gyeonggi Province.
Despite the desperate yet strong defiance from the golf industry, the government stands firm on its move to save energy.
“There is some decreasing revenue from caddies, with little employment declining among irregular workers, but country clubs are exaggerating the numbers,” said an official of the Ministry of Knowledge Economy.
“Although this action is fleeting, we plan to continue applying the regulation if crude oil prices remain high.”
There are growing complaints from golf circles that a public golf course is a physical training facility like a baseball or football stadium, but the rule is only applied to golf courses.
Professional baseball and football games and even tennis facilities for amateurs are free from the current energy-saving measure.
“Baseball and football are totally different from golf in public sentiment,” he said.
“Golf is around 400 times more than baseball or football in terms of power consumption per head.”