South Korea’s fitness industry, once a thriving sector fueled by the country’s social media-driven body culture, is now facing an unprecedented crisis. In 2024 alone,553 gyms closed their doors—a staggering 26.8 percent increase from the previous year and the highest number recorded since data collection began in 1990. This alarming trend has left many gym owners scrambling to sell their businesses, while prepaid customers are left stranded without refunds due to fraudulent closures.
Gym Closures Surpass Pandemic-Era Shutdowns
According to Local Business Permit Data from the Ministry of the Interior and Safety, the current wave of closures is even more severe than during the COVID-19 pandemic. In 2020, 430 gyms shut down due to government restrictions, followed by 402 in 2021. Though, last year’s numbers surpassed both, with at least 36 more gyms closing in early 2025.
In South Korea, gym owners typically charge a “gwonriggeum” (business transfer fee) when selling their businesses, allowing the buyer to take over an existing customer base and equipment. However, many desperate owners are now giving up their gyms without any transfer fee—a clear sign of financial unsustainability.
“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.
Brutal Price Wars and Prepaid Gym Scams
The industry’s challenges extend beyond economic struggles. South Korea’s gym market is drowning in cutthroat competition, with large chain gyms offering ultra-low membership fees—some as cheap as 10,000 to 20,000 won (approximately $7–$14) per month. Independent gyms, unable to compete with these deep discounts, are bleeding money and shutting down.
As more gyms collapse, fraudulent closures are becoming a serious problem. Some gyms shut down after collecting large prepayments, leaving customers with no refunds and no recourse. Last month, a prominent gym in Goyang, Gyeonggi Province, abruptly closed, leaving numerous prepaid members stranded. A similar case in Hwaseong, also in Gyeonggi Province, last 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.
According to the Korea consumer Agency, complaints about gym prepayment fraud have been steadily rising—from 2,406 cases in 2021 to 2,521 as of September 2024.
Attorney Kwak Jun-ho from Law Firm Chung warned that some gyms intentionally run aggressive discount promotions before shutting down. “If a gym suddenly offers an unreasonably low membership fee, it could be a red flag,” he said.
Key Statistics on South Korea’s Gym Crisis
| Year | Gym Closures | Notable Trends |
|———-|——————|——————–|
| 2020 | 430 | Pandemic shutdowns |
| 2021 | 402 | Continued closures |
| 2024 | 553 | Record high |
| 2025 | 36 (early) | Ongoing crisis |
the future of South Korea’s fitness industry remains uncertain. With gym closures surpassing pandemic-era levels and fraudulent practices on the rise, both gym owners and consumers are facing significant challenges.As the industry grapples with these issues, the need for regulatory oversight and consumer protection has never been more urgent.
For more insights into South Korea’s evolving economic landscape, explore this detailed analysis.
