Financial Groups Profit from Korean Womens Golf Sponsorship

Half of the Korean female golfers who have won LPGA Tour tournaments this year are sponsored by finance firms. Six players have been sponsored by five finance firms ─ KB Financial Group, KEB Hana Bank, NH Investment & Securities, BC Card and Mirae Asset.

KB supports two winners ─ Olympic Gold medalist Park In-bee, who also won this year’s HSBC Women’s Champions, and Lee Mi-hyang, winner of the Ladies Scottish Open. According to the ASN Index, KB is the third highest spender for the women’s golf (9.9% market share, US$1.382m) since 2014, and is far behind Hana Bank (35.7% market share) and KEB Bank (29.7% market share), however its astute, bang for the buck moves in market has been well-noted.

The Seoul-based banking group has been savvy with its sporting partnership; picking female athletes of less popular sports, including retired figure skater Kim Yuna and former rhythmic gymnast Son Yeon-jae, way before they became household names across the nation.

The scenario works for its golfing partnerships too. Lee was just a rookie playing on the developmental tour of the LPGA Tour when KB took her on. As for Park, it began to back her in May 2013 when she was struggling to secure sponsorships due to her poor form on the course.

It is obvious finance companies are trying to bank on emerging athletes in niche sports because they don’t require as much money as running professional football or baseball clubs. Golf, particularly female professionals, is an ideal fit as most HNWI clients are passionate about the sport, and the firms arrange for their sponsored golfers to play games with customers.

“Customers prefer playing with female golfers with similar driving distances to them,” an industry official said, “so the companies invest in female players more than male players.”

This marketing strategy can allow banks and other financial firms to promote their brand image to wealthy customers. If the players do well in competitions, the companies can draw public attention as trusted supporters. Just before Park became a Grand Slam golfer in 2015, KB offered a special installment savings that offered higher interest rates if she won. It drew in US$195m in six months.

Since Q414, homegrown financial groups have invested almost US$14m in South Korea’s flourishing female golf scene cementing the platform as the flag-bearer for the fairer sex in Asia’s sporting landscape.