Golfzon

Golfzon is a golf simulator developer and manufacturer established in 2015 through a spin-off of the screen golf and maintenance business from Golfzon Newdin Holdings, and it operates through a headquarters plus numerous domestic and overseas subsidiaries.

Its core operations comprise the franchise and non-franchise segments that supply simulators to screen golf rooms and practice ranges, and the maintenance segment covering after-sales service and store operation support, alongside the GDR (GOLFZON Driving Range) indoor practice range business.

Overseas operations run through local subsidiaries in the United States, Japan, China, Vietnam and elsewhere, and the company has recently sought to expand through initiatives such as a sales contract for its 'City Golf' urban golf facility concept in the U.S.

Its subsidiary Golfzon Cloud (formerly Golfzon Deca), which makes golf distance-measuring devices, is understood to have posted weak results recently amid intensifying market competition.

The company has maintained strong brand recognition in the screen golf market through refined technology optimization, patent and R&D investment, and a nationwide service center network.

That said, the market carries the characteristics of a fully competitive space with low entry barriers, meaning constant price and quality competition from both new and existing rivals.

Cumulative installations of screen golf simulators are estimated at roughly 43,000 units through 2025, reflecting continued efforts to expand the installed base. With domestic growth stalling, raising the share of overseas revenue appears to be the company's medium-term strategic direction.

Golfzon's annual revenue peaked at KRW 685.1 billion in 2023 before contracting for three straight years to KRW 620.0 billion in 2024 (-9.5%) and KRW 483.3 billion in 2025 (-22.1%). Operating margin has also eased gradually, from 24.1% in 2022 to 16.7% in 2023, 15.5% in 2024, and 14.1% in 2025.

Owners' net profit fell from KRW 113.7 billion in 2022 to KRW 25.6 billion in 2025, marking four consecutive years of decline in absolute terms.

On a quarterly basis, the slowdown was moderate through Q3 2025 (revenue KRW 120.8 billion, operating profit KRW 15.3 billion), but Q4 2025 saw a sharper drop to revenue of KRW 111.5 billion and operating profit of KRW 6.2 billion, with owners' net profit swinging to a quarterly loss of roughly KRW -22.1 billion — a loss far larger than the operating result, suggesting some one-off charges were recognized.

The company then returned to profit in Q1 2026 with revenue of KRW 111.8 billion, operating profit of KRW 14.1 billion, and owners' net profit of KRW 15.9 billion, while Q2 2026 revenue fell to KRW 101.2 billion and operating profit to KRW 6.6 billion, down 16.4% and 66.5% year-on-year respectively and below market consensus, even as owners' net profit remained positive at KRW 10.1 billion.

Slowing growth in new domestic stores and the exhaustion of new-product replacement demand weighed on franchise and non-franchise segment revenue, while intensifying competition and slower inflow of new golfers weighed on the GDR segment.

In contrast, the overseas business has continued to grow on rising U.S. demand for the TwoVision NX and a restructured China product lineup, partly offsetting the overall decline.

Korea's screen golf market appears to have entered a mature or stagnant phase amid slowing new-store openings, diversification of leisure demand, and a plateau in golfer growth.

Golfzon retains a dominant domestic position on the strength of its refined technology, nationwide service network, and brand recognition, but the low entry barriers of this fully competitive market mean price and quality competition are constant.

Overseas markets, particularly the United States, appear to show relatively resilient demand for golf simulators, and the company's global store count has continued to rise on a quarterly basis.

NH Investment & Securities projected in a January 2026 report that Golfzon's overseas revenue share would rise from 8% in 2020 to 22% in 2025 and to 31% in 2026.

The same report estimated a sharp year-on-year increase in North American subsidiary revenue, consistent with a company-wide effort to offset domestic stagnation with overseas growth.

While some observers note that softness in the broader domestic golf course market could push demand toward relatively affordable screen golf, diversification into other leisure activities is simultaneously constraining the inflow of new golfers.

Shinhan Investment & Securities projected in an April 2026 report an improvement in second-half results, citing a rebound in the domestic screen golf business, new-product effects in screen golf and GDR, and progress on a U.S. sales contract for the 'City Golf' urban golf facility.

The same report noted that the domestic segment's earnings decline appeared to be nearing its end, and that if U.S.-led overseas growth continued, a pronounced low-first-half, high-second-half pattern could emerge.

Eugene Investment & Securities, in a May 2026 report, expected domestic weakness to persist through the second quarter while highlighting that overseas revenue growth had continued for more than five consecutive quarters as a positive.

In a subsequent August 2026 report, the same firm noted that although Q2 results fell short of market consensus, Q3 was expected to see easing declines in domestic franchise and non-franchise revenue on new-product effects, alongside continued overseas growth.

In its disclosures, the company stated that overseas growth continues to be driven by rising U.S. demand for the TwoVision NX and expanded demand following a restructured China product lineup.

Taken together, the key watch points ahead are the pace at which domestic franchise, non-franchise, and GDR declines ease, whether overseas growth is sustained, and the speed of new-product rollout.