February 4, 2025
SEOUL – South Korea’s once-booming fitness industry is in crisis. Despite the country’s social media-driven body culture, gyms are shutting down at an unprecedented rate.
In 2024 alone, 553 fitness centers closed — a 26.8 percent 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.
Gym closures surpass pandemic-era shutdowns
According to Local Business Permit Data from the Ministry of the Interior and Safety, 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 last year’s numbers surpassed both. At least 36 more gyms have already closed in early 2025.
In South Korea, gym owners typically charge a “gwonriggeum” (business transfer fee) when selling, allowing 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.
Brutal price wars and prepaid gym scams
Beyond economic struggles, South Korea’s gym industry is drowning in cutthroat competition. Large chain gyms offer 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.
With more gyms collapsing, fraudulent closures are becoming another 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.