March 3, 2025
SEOUL – When economic uncertainty looms, people often cut back on dining out, travel and entertainment. But one expense some South Koreans are unwilling to forgo is their boutique fitness membership.
“It’s a lifestyle, not a luxury,” Jamie Kim, CEO of F45 Training & FS8 Korea, told the Korea Herald.
Kim’s observation reflects a growing trend in Korea’s fitness industry: even as traditional gyms shut down at record rates, boutique fitness studios like F45 are expanding. In 2024, 553 gyms closed nationwide, surpassing even COVID-19 pandemic-era shutdowns. At the same time, brands like F45 Training, FS8 Pilates and ButFit Seoul have continued to grow, tapping into a new kind of consumer demand — one that prioritizes structured workouts, high engagement and a sense of community over simply having access to gym equipment.
This contrast begs the question: Why are conventional gyms struggling, and what makes pricey boutique fitness appealing to Korean consumers?
Why traditional gyms are collapsing
One could say the downfall of Korea’s traditional gym industry has been years in the making. Between 2019 and 2023, the number of gyms in the country nearly doubled according to local business permit data, leading to unsustainable competition and brutal price wars.
Large chain gyms slashed membership fees to as low as 10,000–20,000 won ($7–$14) per month, forcing smaller gyms to either drop prices beyond profitability or close their doors.
Worse, many fitness centers relied on prepaid membership models, offering steep discounts for six-month, or even year-long contracts. When financial instability hit, some resorted to outright fraud — shutting down overnight and leaving prepaid members without refunds. Consumer complaints skyrocketed, with over 2,500 gym-related fraud cases reported in 2024 alone, according to the Korea Consumer Agency.
A personal trainer who recently opened a large gym in Incheon shared his perspective as a business owner. “Most gym owners aren’t exactly looking to swindle people from the start,” he said. “But in Korea, gyms rely on prepaid memberships as startup capital, not just revenue. So when new sign-ups decline, financial collapse becomes almost inevitable.”
Enter boutique fitness
Unlike traditional gyms, where members exercise independently, boutique fitness studios offer structured, instructor-led workouts in small group settings. These studios specialize in high-intensity interval training, strength training and functional movement programs.
F45 Training, one of the most recognizable names in boutique fitness, has been at the forefront of this shift. Originally founded in Australia, F45 offers 45-minute circuit-style HIIT workouts, combining cardio, strength and agility training in a globally standardized format. Every session is programmed in advance and displayed on screens, ensuring members follow the same workout regardless of location — whether in Seoul, Sydney or New York.
Since launching in Korea in 2019, F45 has expanded from one location to over 50 studios nationwide, with additional openings planned in 2025. This rapid growth is mirrored by competitors like ButFit Seoul, SleekBoost and GoodHabit PT, which are similarly scaling up through franchise expansion.
Joseph “Joe” Maier, COO of Embrace Co. Ltd., the master franchisee for F45 Training & FS8 in Korea, explained why this approach has resonated with Korean consumers.
“Big-box gyms focus on volume — getting as many people through the doors as possible. Boutique fitness is experience-driven. Every workout is structured, coached and community-based, which keeps people coming back.”
“One thing that worked in our favor when launching F45 in Korea was the strong emphasis on community — Koreans naturally enjoy doing things in groups and seek validation from shared experiences. That collective mindset made it easier for us to build a highly engaged, energetic member base,” Kim added.
Unlike traditional gyms that rely on prepaid memberships, boutique studios use subscription-based pricing, increasing financial stability. At F45 Gwanghwamun, a single session costs 35,000 won ($26), while an unlimited monthly membership runs 348,000 won. Though expensive compared to budget gyms, F45 reports a 90 percent monthly renewal rate and an average membership period of 18 to 19 months, according to internal company data.
This high retention is due in part to the demographics of boutique fitness consumers. F45 Korea’s membership is 62.7 percent people aged 25–35, followed by 26.9 percent aged 35–44. While younger professionals make up the bulk of members, Kim noted that participation from people in their 40s and 50s is steadily increasing, mirroring trends seen in Western markets.
For first-time attendees, boutique fitness can be an intense but exhilarating experience. A ButFit Seoul member in her late 20s, who also maintains a separate gym membership, described her first session:
“In a 50-minute class, I burned over 600 calories — way more than I ever did working out alone at a gym. The structured format pushed me in a way I couldn’t have achieved on my own.”
Socializing and status
While fitness remains the core attraction, boutique studios are also becoming social hubs — especially among young professionals. Many members see these studios as a place to meet like-minded people, leading some to describe the experience as “elite socializing.”
One former F45 member in her 30s, who attended multiple locations across Seoul over a year for socializing, likened the culture to a “cult.”
She also found the gym valuable to her professional life. “There’s a sense of team spirit that’s hard to find elsewhere. A lot of professionals in high-income jobs go there — it’s almost like high-end networking disguised as a workout.”
The global nature of F45’s programming also fosters an international community. CEO Kim recalled how she and a friend in New York exchanged messages about the same workout happening in different time zones:
“If today’s workout is ‘Bears’ – a pretty well-known cardio workout among our members – then I know my friend in the US will be doing the exact same session later that day. It creates this shared experience, even across continents.”
Can boutique fitness avoid the same pitfalls as traditional gyms?
But as boutique fitness brands rapidly expand through franchising, some industry insiders worry about potential overcrowding and quality control issues.
The Korean personal trainer who recently opened his large-scale gym in Incheon expressed skepticism, arguing that boutique studios provide a solid entry point but lack the depth of one-on-one coaching for long-term fitness development.
Maier acknowledged these concerns but argued that boutique fitness serves a different purpose.
“Our competition isn’t personal training. It’s other group fitness providers. Some people want individual coaching, but our members want that socializing element.”
Despite the high-intensity nature of its workouts and premium pricing, F45 Korea sees its high retention rate and long average membership periods as a positive sign that the model is sustainable, even as competition increases.
“Of course, we don’t expect members to stay forever — that’s just how fitness works,” he said. “People come and go, so the key isn’t stopping churn, but keeping workouts engaging and ensuring there’s always new interest coming in.”