Seoul, South Korea – The Korea Ladies Professional Golf Association (KLPGA) tour, which had been enjoying a surge in popularity, is now facing a downturn. After experiencing a golf boom following the COVID-19 pandemic, the KLPGA tour saw a significant increase in the number of tournaments and prize money each year. In 2023, a record 32 tournaments were held, with a total prize money of 33.13 billion won, the highest in history. However, with the deteriorating economy and unstable global situation, the tour is expected to experience negative growth this season.
One of the most significant examples is the cancellation of the major tournament, Hanwha Classic. The failure to find a new sponsor to replace Hanwha Classic has resulted in the tour returning to a four-major tournament system this year.
Established in 1990 as the Hanwha Cup Seoul Ladies Open, Hanwha Classic was upgraded to the fifth major tournament on the KLPGA tour in 2017. The tournament offered a total prize money of 1.7 billion won last season, making it the most lucrative of the 31 tournaments held that year. An industry insider, who wished to remain anonymous, revealed that Hanwha Group decided to withdraw from golf sponsorship due to the ongoing economic downturn, which led to salary cuts for executives and a 20% reduction in overall costs. Hanwha Q Cells Golf Team also ceased its support for overseas tour players at the end of last year. A KLPGA tour official stated, "Due to internal regulations regarding major tournaments, we may consider adding another major tournament next year, but for this season, we can only have four major tournaments."
According to a comprehensive investigation by the Dong-A Ilbo, at least five tournaments from last season will not be held this season. This includes the Hana Financial Group Singapore Women's Open, which kicked off the season last year, and the SK Telecom-SK Shieldus Championship, the season's final tournament. Both tournaments were sponsored by major corporations. Celltrion Queens Masters and Kyochon Ladies Open are also expected to leave the KLPGA tour.
The KLPGA tour had been actively pursuing overseas tournaments to expand its reach, but with the cancellation of the Singapore tournament, only the Blue Canyon Ladies Championship in Thailand remains. A source familiar with the matter revealed, "Last year, the Singapore tournament unfortunately coincided with the U.S. pop star Taylor Swift's concert in Singapore." This led to unexpectedly high costs for hotels and flights, prompting Hana Financial Group to express reluctance to continue sponsoring the tournament.
The KLPGA tour has secured four new sponsors to replace the departing companies. However, the size of the tournaments and the total prize money are expected to decrease due to the difference in scale between the departing and new sponsors. A KLPGA tour official said, "Tournaments sponsored by large corporations and banks will be replaced by those sponsored by mid-sized companies and local banks. The number of tournaments will be similar to last year, but the total prize money is expected to decrease due to the difference in the scale of the companies." Four of the five tournaments canceled this season offered a total prize money of over 1 billion won.
This situation contrasts sharply with the thriving LPGA Tour. Celebrating its 75th anniversary this year, the LPGA Tour will hold 33 tournaments, an increase of two compared to last season. The total prize money is also a record high of $131 million.
The problem is that more companies are expected to leave the KLPGA tour. While many companies eagerly sponsored the KLPGA tour following the surge in popularity of golf in Korea after COVID-19, an increasing number of companies believe they have not achieved the desired promotional effects. An official from a company that has decided to cancel its tournament this season stated, "Hosting a KLPGA tour tournament requires an investment of around 7 billion won, including the cost of renting the golf course for a week, operating the tournament, and prize money. There have been continuous internal concerns about the lack of significant returns for the amount spent. If the KLPGA tour does not quickly find a solution to overcome this crisis, more companies will leave the tour."
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