[비즈한국] It has been confirmed that the rehabilitation plan for Volcano Golf & Resort, the operator of Volcano Country Club (Volcano CC), was recently approved. Due to persistent losses resulting in complete capital erosion, the company filed for rehabilitation proceedings in 2024. Although it faced a near-bankruptcy crisis as a significant number of creditors opposed the rehabilitation, the approval of the plan has provided a temporary reprieve.
Volcano Golf & Resort operates Volcano CC and a resort in Seogwipo-si, Jeju Special Self-Governing Province. The predecessor of Volcano CC is Lake Hills Jeju CC, which opened in 2002. Lake Hills Jeju CC was once established as a representative golf course in Jeju, hosting various tournaments. However, after the operating company, Lake Hills Co., Ltd., suffered from financial difficulties in the 2020s, it sold its management rights to Horim C&I and Daho Chemical in 2023. It was subsequently reopened as Volcano CC, and the corporate name was changed from Lake Hills to Volcano Golf & Resort.
Filed for Rehabilitation in 2024 Amidst Capital Erosion and Operating Losses
The financial situation did not improve even after the reopening as Volcano CC. According to audit reports, Volcano Golf & Resort’s total capital as of the end of 2024 stood at negative 58.1 billion KRW, indicating a state of complete capital erosion. Profitability was also poor, with an operating loss of 3.3 billion KRW recorded that year. Ultimately, Volcano Golf & Resort filed for rehabilitation proceedings in December 2024.
BizHankook's investigation revealed that the Seoul Bankruptcy Court approved the rehabilitation plan for Volcano Golf & Resort on the 3rd. The court stated, "The rehabilitation plan (for Volcano Golf & Resort) meets the requirements under the Debtor Rehabilitation and Bankruptcy Act and is necessary for the debtor's rehabilitation."
Although many creditors were negative about the rehabilitation plan, a Seoul-based freight transportation company, Company W, supported Volcano Golf & Resort by purchasing disputed claims. Volcano Golf & Resort described Company W as a "friendly investor," and in its audit report, Company W explained that it acquired the claims with the intent of obtaining management control. This suggests an intention to secure a stake in Volcano Golf & Resort through debt-for-equity swaps.
Volcano Golf & Resort plans to secure repayment funds by converting from a membership-based course to a public golf course and selling off resort units. However, the possibility of performance improvement remains uncertain. In the 2025 audit report for Volcano Golf & Resort, Taeil Accounting Firm stated, "The situation (at the company) casts significant doubt on its ability to continue as a going concern," adding that "whether the company will survive as a going concern involves significant uncertainties that depend on the success or failure of future management improvement plans."
Number of Golfers Declining While Golf Course Numbers Rise
The shrinking golf population is another unfavorable factor. According to the Korea Golf Course Business Association, the number of golf course visitors nationwide has been declining: 50,583,383 in 2022; 47,722,660 in 2023; 47,413,392 in 2024; and 46,414,642 in 2025. Conversely, the number of golf courses increased from 514 in 2022 to 524 in 2025. This creates a situation where the number of golf courses is rising despite the decrease in visitors.
However, there is some positive news, as Volcano Golf & Resort turned a profit last year with an operating profit of 400 million KRW. Furthermore, it is reported that the facility is still visited by a considerable number of tourists due to its location in Jungmun-dong, a major tourist destination in Seogwipo.