[Click eStock] "Seoul Auction to Rebound Next Year with Art Market Popularization"

[Asia Economy Reporter Eunmo Koo] Seoul Auction is expected to solidify its performance bottom amid this year's worst business environment and see a full-scale performance turnaround next year.

On the 7th, Juwon Ahn, a researcher at Yuanta Securities, stated in a report, "Capital gains from artwork sales are classified as other income, and with the current capital gains tax rate maintained, tax issues have been resolved. With active art investments by younger generations, the era of auction popularization is opening," adding, "Due to changes in auction methods caused by the COVID-19 pandemic, online auctions have taken root, and as the number of auctions is expected to increase, Seoul Auction's past glory will be revived next year."

The popularization of the art market through joint art purchases and the activation of online auctions is also viewed positively. Previously, art prices were high, making high-net-worth individuals the main consumer base, but since the emergence of joint art purchase platforms in 2018, the consumer base has diversified. Researcher Ahn explained, "Joint art purchases are platforms where multiple investors share the purchase of high-priced artworks and can resell them to recover their investments, enabling investment with small amounts and leading to the popularization of the art market. As a result, younger consumers are using this as a financial investment method, emerging as a major investment tool, and demand for interior art has simultaneously increased due to staying at home during COVID-19."

The auction methods are also changing due to COVID-19. Researcher Ahn said, "Offline auctions are being minimized while the number of online auctions is increasing. With the influx of younger generations, auction categories are expanding to include street art, art toys, jewelry themed around animation," adding, "With the expansion of online auctions by various auction companies, consumers are gaining auction experience online, improving accessibility to art auctions."

Global major auction houses Sotheby's and Christie's conducted 56 and 35 online auctions respectively from January to October. Notably, Sotheby's held its first video conference-style auction in July, where artworks worth approximately 435.5 billion KRW were sold, achieving a 93% success rate and a successful event. Domestically, the online auction market size is growing annually. In the first half of 2020, the online auction sales amounted to 12.1 billion KRW, achieving over 60% of the 19.7 billion KRW recorded in 2019, accounting for 25% of the total auction sales amount.

This content was produced with the assistance of AI translation services.