Heavy price: Beyond economic struggles, the gym industry is drowning in cut-throat competition. — The Straits Times/ANN
ONCE booming, the fitness industry is now in crisis. Despite the country’s social media-driven body culture, gyms are shutting down at an unprecedented rate.
In 2024 alone, 553 fitness centres closed – a 26.8% increase from the previous year and the highest number recorded since data collection began in 1990. Many struggling gyms are now looking for new owners, while fraudulent closures leave prepaid customers without refunds.
According to local business data from the Interior and Safety Ministry, the wave of closures is even worse than during the Covid-19 pandemic, when government restrictions forced shutdowns. In comparison, 430 gyms closed in 2020 and 402 in 2021, yet 2024’s numbers surpassed both. At least 36 more gyms have already closed in early 2025.
In South Korea, gym owners typically charge a gwonriggeum, which is a business transfer fee, when selling. This allows the buyer to take over an existing customer base and equipment. But now, desperate owners are giving up their businesses without any transfer fee – a sign that many gyms are financially unsustainable.
“Gyms that can’t even charge a transfer fee are in serious trouble,” said a struggling gym owner, who requested anonymity.
“Most don’t last beyond a year or two,” he added, predicting a further rise in closures.
Beyond economic struggles, South Korea’s gym industry is drowning in cut-throat competition. Large chain gyms offer ultra-low membership fees – some as cheap as 10,000 won to 20,000 won (RM29.50 to RM59) a month.
Independent gyms, unable to compete with these deep discounts, are bleeding money and shutting down.
With more gyms collapsing, fraudulent closures are becoming a serious problem. Some gyms shut down after collecting large prepayments, leaving customers with no refunds and no recourse.
In December 2024, a prominent gym in Goyang, Gyeonggi province, abruptly closed, leaving numerous prepaid members stranded. A similar case in Hwaseong, also in Gyeonggi, in November triggered consumer complaints. Many affected members had prepaid millions of won for personal training sessions, only to be told by the police to “wait” for investigations. — The Korea Herald/ANN
