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

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.”