Last Updated on February 6, 2025
Over the past decade, South Korea has witnessed a dramatic rise in its fitness culture. The country’s obsession with sculpted bodies, social media fitness influencers, and K-pop-inspired aesthetics has fueled a booming industry. Gyms, personal trainers, and fitness programs thrived as more South Koreans embraced the pursuit of health and aesthetics. However, beneath the surface of this vibrant fitness movement, a troubling trend has emerged—gyms are closing at an alarming rate, signaling a deeper crisis within the industry.
Despite the increasing demand for fitness, 2024 saw a record-breaking 553 gym closures, marking a 26.8% increase from the previous year. This surpasses even the most challenging times during the COVID-19 pandemic when lockdowns and social distancing restrictions forced fitness centers to shut down. In 2020, 430 gyms closed, and in 2021, that number was 402. But in 2024, despite the lifting of pandemic-related restrictions, the fitness industry is struggling more than ever. Already in early 2025, at least 36 more gyms have shut their doors, and the trend shows no sign of slowing down.
What is causing this mass shutdown of gyms? How did an industry that once flourished find itself in crisis? To understand this phenomenon, we must look beyond the surface and analyze the economic struggles, cutthroat competition, and fraudulent practices that are now threatening the very foundation of South Korea’s fitness industry.
The Harsh Economics of Gym Ownership in South Korea
One of the primary reasons for the gym closures is financial instability. Opening a gym in South Korea is a high-risk business venture with significant upfront costs. Gym owners invest heavily in equipment, rent, and maintenance, all while facing intense competition from both independent and chain fitness centers.
In the past, when a gym was struggling, owners would attempt to sell their business by charging a gwonriggeum, or business transfer fee. This allowed the new owner to take over an existing customer base and equipment, providing some financial relief to the previous owner. However, in 2024, desperate gym owners are increasingly abandoning their businesses without charging a transfer fee, a clear indication that the industry is no longer financially viable.
“Gyms that can’t even charge a transfer fee are in serious trouble,” said one struggling gym owner who requested anonymity. “Most don’t last beyond a year or two,” he added, predicting that the wave of closures will continue in 2025.
The Price War: How Large Gym Chains Are Crushing Independent Gyms
Another major factor contributing to the crisis is the fierce competition among fitness centers. South Korea is home to an increasing number of large chain gyms that offer ultra-low membership fees, some as low as 10,000 to 20,000 won ($9 to $18) per month. These rock-bottom prices attract customers but make it nearly impossible for independent gyms to stay afloat.
Unlike chain gyms, independent fitness centers often rely on personal training packages and premium memberships to make ends meet. However, as more consumers opt for the affordability of chain gyms, smaller gyms are struggling to sustain their business models.
With such low-cost memberships dominating the market, gym owners are forced to either lower their prices drastically—often leading to financial losses—or attempt to offer specialized training programs at a higher cost. Unfortunately, in a competitive market where consumers prioritize affordability, independent gyms are left in a losing battle.
The Rise of Gym Closures and Fraudulent Practices
As more gyms collapse, a disturbing trend has emerged: fraudulent gym closures that leave prepaid customers stranded without refunds. This issue has led to a growing number of complaints from gym-goers who invested significant amounts of money in memberships and personal training sessions, only to find themselves left with nothing.
A notable case occurred in December 2024, when a prominent gym in Goyang, Gyeonggi Province, abruptly shut down. Many customers had prepaid for months of personal training sessions, but when the gym closed overnight, they were left with no refunds and no way to recover their losses. A similar case in Hwaseong, Gyeonggi Province, in November 2024, triggered mass consumer complaints. Members who had paid millions of won for their training programs were left helpless as authorities provided little assistance beyond advising them to “wait” for investigations.
According to the Korea Consumer Agency, complaints about gym prepayment fraud have been rising steadily, from 2,406 cases in 2021 to 2,521 cases as of September 2024. The number is expected to rise further as more struggling gyms attempt to secure last-minute cash before closing down.
South Korean lawyer Kwak Jun-ho has warned consumers to be cautious of gyms that suddenly offer extremely low membership fees or aggressive discounts.
“If a gym suddenly offers an unreasonably low membership fee, it could be a red flag,” he said. “Some gym owners take advantage of unsuspecting customers by collecting large prepayments before shutting down without warning.”
The Future of South Korea’s Gym Industry: Is There a Way Out?
With an increasing number of gym closures, fitness enthusiasts in South Korea are facing an uncertain future. The country’s fitness industry is at a crossroads, and unless drastic measures are taken, the downward trend is unlikely to reverse anytime soon.
1. Stricter Regulations on Gym Prepayment Policies
To protect consumers, there needs to be stricter regulations on gym prepayments. One possible solution is implementing escrow systems for gym memberships, ensuring that prepaid fees are safeguarded and only released to gym owners on a monthly basis. This would prevent gyms from disappearing overnight with customers’ money.
2. Rethinking Business Models
Independent gym owners may need to rethink their business models by shifting their focus toward boutique fitness studios, specialized training programs, and hybrid memberships that combine both online and in-person training. Diversifying revenue streams can provide a cushion against financial instability.
3. Government Support and Industry Reforms
The South Korean government could introduce financial assistance programs for struggling gyms, similar to how pandemic relief measures were implemented. Additionally, industry reforms could focus on balancing fair competition between large chain gyms and independent fitness centers, preventing monopolistic pricing strategies that drive small businesses out of the market.
4. Consumer Awareness
Fitness consumers must be more vigilant about where they invest their money. Before committing to long-term memberships, gym-goers should research the financial stability of their chosen fitness center, avoid gyms offering unrealistic discounts, and seek monthly payment plans over bulk prepayments.
Fitness Culture at a Crossroads
South Korea’s fitness culture remains strong, but its gym industry is facing its biggest crisis yet. Record-breaking closures, financial struggles, cutthroat competition, and fraudulent practices are shaking the foundations of an industry that was once thriving.
While the future remains uncertain, the current situation highlights the urgent need for regulatory reforms, innovative business strategies, and greater consumer awareness. If independent gym owners, government authorities, and fitness consumers work together to address these challenges, South Korea’s fitness industry may yet find a way to survive and evolve in the years ahead.
