Shinsegae Investing in 'Art'... Attracting Not Only VIPs but Also the 2030 Generation

Shinsegae Department Store Main Branch 'Blossom Art Fair' Scene.

[Asia Economy Reporter Yuri Kim] Shinsegae is expanding its business in the art market, which is gaining attention as a new investment destination. The strategy is to attract demand for art tech (investment through artworks) to Shinsegae's online and offline platforms beyond just shopping.

◆280 Billion KRW Investment in Seoul Auction

On the 30th, Shinsegae announced that it will participate in a third-party allotment paid-in capital increase of Seoul Auction, acquiring 856,767 shares for approximately 28 billion KRW. After acquiring the shares, Shinsegae's stake in Seoul Auction will be 4.82%. A Shinsegae official said, "We participated in this equity investment to prepare for entry into the art market while showcasing stable product purchases and differentiated art business."

Seoul Auction, established in 1998, is the leading art auction company in Korea. Last year, it held a 38% market share in the domestic market based on total auction sales. Its subsidiary, Seoul Auction Blue, entered the non-fungible token (NFT) market in May by partnering with Dunamu, the operator of the cryptocurrency exchange Upbit. Purchasing art NFTs allows ownership of limited edition artworks and digital pieces with unique identification numbers. Shinsegae is also known to have a strong interest in NFT art-related businesses. As the 2030 generation is actively engaging in art tech through joint purchases of NFT artworks, Shinsegae aims to expand its customer base through this channel.

◆Shinsegae Expands Art Business

Shinsegae opened the first gallery in a domestic department store at its main branch in 1966. Currently, it operates galleries at six locations including Shinsegae Department Store’s Main Branch and Gangnam Branch in Seoul, as well as in Gwangju, Daegu, Busan, and Daejeon. The gallery team, composed of about ten curators, was elevated to an executive-level organization in 2019, overseeing exhibition planning and sales. In March, Shinsegae added "consulting related to art exhibition, sales, brokerage, and rental business" to its business objectives, signaling a full-scale entry into the art business.

Most notably, the "Art Space," an art exhibition and sales area unveiled through the renewal of the third floor of Shinsegae Gangnam Branch in August last year, was a success. A Shinsegae official said, "Not only VIPs but also the 2030 generation showed great interest." Since August last year, more than 720 artworks have been sold through Shinsegae galleries. In the first half of next year, Shinsegae plans to create an Art Space category within its mobile application to actively promote online sales.

◆From VIPs to the 2030 Generation

Industry experts view Shinsegae’s expansion into the art business as meaningful not only for new business growth but also for securing potential loyal customers. With increasing liquidity in the market, a wave of art tech is rising following real estate and stock investments, including many from the 2030 generation who start with small investments. According to the Korea Art Market Appraisal Association, domestic art auction transaction volume reached 296.8 billion KRW by November this year, far surpassing last year’s 115.3 billion KRW. A retail industry official said, "Shinsegae’s online and offline platforms, which are more familiar to the 2030 generation, will likely be used for art purchases, enabling linkage with shopping as well."

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