Korean Golf Course Buyers Hit Hard by Acquisition Tax Hike

Korean companies have been on a buying spree for Japanese golf courses in recent times, taking advantage of the weak yen to cut acquisition costs. According to a report by KED Global, South Korea's M&A market for membership golf courses has slowed down due to an increase in the acquisition tax rate from 4% to 12%. This move is expected to deal a blow to companies seeking to improve their financial conditions by selling non-core assets.

The trend contrasts with Japan's own M&A market, where golf course acquisitions are on the rise. Companies such as South Korea's SK Group and KB Financial Group have been actively investing in Japanese golf courses. With the weak yen making it cheaper for Korean companies to acquire golf courses, this trend is expected to continue.

While some analysts expect the acquisition tax rate to be reduced in the future, others are cautioning that it may not happen soon. The impact of the increased tax rate on South Korea's M&A market remains to be seen.