South Korean Companies Expanding Golf Course Acquisitions in Kyushu – What’s Behind the Trend?

The number of golf courses in Japan is more than seven times that of South Korea

IIn recent years, a significant shift has been taking place in Kyushu’s golf industry—an increase in acquisitions by South Korean companies.

South Korea-based Saikan Holdings, which operates in IT, gaming, and real estate, had already been managing the Takeo Ureshino Country Club in Saga Prefecture. Since 2023, the company has expanded its operations to include four more golf courses in Saga, including Tenzan Country Club in Taku City.

In December 2023, SHOWGOLF, a South Korean company that runs golf practice facilities and a golf course booking platform, announced its acquisition of Satsuma Golf Resort in Kagoshima Prefecture. Then, in February 2024, Yongpyong Resort, a major leisure company, acquired Aino Country Club in Unzen City and Shimabara Country Club in Minamishimabara City, both in Nagasaki Prefecture. This trend of South Korean firms purchasing Japanese golf courses shows no signs of slowing down.

Why are South Korean companies so eager to acquire Japanese golf courses?

A journalist from a national newspaper explains:

“In April 2023, the South Korean business magazine Economist published an article titled ‘A Weak Yen Opens Up the Skies. The Surging Interest in Buying Japanese Golf Courses’. It reported that South Korean companies and individual investors have been eyeing Japan’s golf courses, especially as the yen’s depreciation since 2022 has made them more attractive investments.”

A South Korean investor specializing in golf course M&A also reveals:

“Japanese golf courses, especially in rural areas, have seen a decline in value, making them highly appealing to investors. Although prices vary, Japanese golf courses are generally around 20% cheaper than those in South Korea. While Japan’s population is more than twice that of South Korea, the number of golf courses is seven to eight times greater. As a result, Japanese golf courses are undervalued compared to those in Korea. In short, Japan is a prime target.”

Expanding into events beyond golf?

To begin with, golf course fees in South Korea are significantly higher than in Japan. According to South Korean golf industry insiders, they are about twice as expensive as in Japan. Given this, it’s no surprise that many South Koreans find it more worthwhile to travel to Japan, play golf, soak in hot springs, enjoy sightseeing, and savor local cuisine, even if the costs are slightly higher. South Korean companies see golf course acquisitions as a way to attract more such tourists.

For example, the golf courses operated by Saikan Holdings in Saga Prefecture are experiencing a significant shift in their customer base. According to the economic magazine Economist, “The proportion of South Korean visitors has increased significantly. Previously, most users were Japanese golfers in their 50s and 60s, but the atmosphere has changed dramatically.” Many golf courses now cater specifically to South Korean customers, even offering dedicated Korean-language websites.

The largest acquisition so far was SHOWGOLF’s purchase of Satsuma Golf Resort. SHOWGOLF, a South Korean company that has operated golf practice ranges since 2003, aims to become an integrated golf platform provider. In July 2023, the company acquired XGOLF, South Korea’s largest golf course reservation site, and subsequently expanded into the Japanese market.

Regarding the scale of Satsuma Golf Resort, the South Korean media outlet NEWSIS reported:

“The golf resort spans approximately 1.25 million square meters—equivalent to about 195 soccer fields. It features a 70-room hotel, tennis courts, an indoor pool, and various other facilities, making it a large-scale multi-purpose resort.”

The course is well known for hosting the LPGA Legends Tour Kyocera Ladies Open in the past and is recognized as an internationally standardized course.

At the time of the acquisition, Seoul Economic Daily interviewed CEO Cho Sung-jun, who spoke enthusiastically about expanding beyond golf:

“The Satsuma Golf Resort in Kagoshima allows carts to be driven directly onto the fairways. We are considering hosting K-pop concerts there and organizing community events that local Japanese residents can also participate in, making it a meaningful cultural space.”

A South Korean-style convenience store will also be installed

Furthermore, regarding the ongoing acquisition of golf courses by South Korean companies, he added:

“In the South Korean golf industry, I believe a yen-demic will trigger a boom in purchasing Japanese golf courses. The demand for overseas golf travel is recovering, and the historic weak yen is fueling this trend.”

He seems very confident in the future of golf course management, but what is the reality? An interview with CEO Cho, published in the economic newspaper Maeil Business last June, was quite shocking.

“I told you, didn’t I? With the ‘SHOWGOLF DNA,’ we would flip the golf course board in Japan. In just five months, we achieved the highest growth rate in sales among golf courses in the Kyushu region. The local golf scene in Kyushu is in an uproar. After the Japan Golf Course Association released its report, we started receiving a flood of inquiries from other golf courses asking, ‘How did you manage to change things so drastically?'”

The golf courses they acquired are being transformed into a more Korean style. Additionally, they have gradually changed the mindset of about 100 Japanese employees.

“We replaced all the old-looking carpets. When guests wanted to visit nearby tourist spots, they had to call a taxi, which cost 40,000–50,000 won (about 4,000–5,000 yen). After learning this, we started offering shuttle bus services and rental cars. We also set up a South Korean-style convenience store inside the clubhouse, where products are sold cheaper than at the airport (laughs).

At first, we considered keeping things in the Japanese style, but now we are doing it the ‘SHOWGOLF’ way. The Japanese employees are enjoying their work, and even the Japanese members—who initially said 20% would leave unconditionally—have stayed. They told us there’s no reason to leave now that the facilities have been modernized and gained popularity.”

According to the article, five South Korean staff members are stationed at the golf course full-time, with around 10 additional personnel rotating in as needed. CEO Cho himself visits the golf course four to five times a month for inspections.

For Japanese people, the rapid wave of golf course acquisitions may bring mixed emotions. However, if these changes help revitalize struggling local golf courses and create an environment where more golfers can enjoy the sport in a healthy way, it may not be such a bad thing after all.