Korean Art Dealers Association Holds Independent Auction... "Seoul Auction and K Auction Disrupt Market Order"

[Asia Economy Reporter Donghyun Choi] The Korea Gallery Association, which has over 160 gallery member companies, has declared that it will hold its own auction to compete against the two major art auction companies, Seoul Auction and K Auction.

The Korea Gallery Association announced on the 4th that "a private auction among member galleries is scheduled to be held on the 26th at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul."

The association explained the background of holding its own auction, stating that the domestic art market is being disrupted by auction companies. As evidence, the association presented the agreement signed in 2007 between the association and Seoul Auction and K Auction.

According to the agreement, major auctions are limited to four times a year, and works by domestic artists purchased by auction companies are not to be put up for auction. Additionally, only works that are at least 2 to 3 years old can be submitted. An association official pointed out, "The primary market galleries and the secondary market auction companies had signed a coexistence agreement for the balanced growth of the art market, but it was not upheld," adding, "Recently, one auction company has been holding as many as 80 auctions a year."

Art auction scene.

In this regard, the association also disclosed the results of a survey conducted last year in the second half targeting gallery members. In response to the question, "Have you experienced or are you aware of any damage caused by auction companies?" 70% of galleries answered "yes." The most significant issue cited was "hindrance to the growth of young artists through direct transactions." Other concerns included "speculation encouraged by excessive price volatility" and "devaluation of artists other than major trading artists." An association official lamented, "Works that have been created recently and works by young artists are entering the secondary market directly without going through the primary market," adding, "In effect, the role of galleries in discovering and nurturing artists is being diminished, and the balance between the primary and secondary markets is collapsing."

The association reiterated that the purpose of holding this auction is to restore market order. The auction will be a private event open only to members, and bidding and winning fees will be waived for this event only. Afterwards, a 5% fee will be charged. Furthermore, the association plans to avoid the skewed artist lineups of auction companies and to publicly exhibit the completed exhibition over three days of preview.

An association official stated, "Despite numerous proposals and warnings, including compliance with the 2007 agreement with the two major auction companies, there has been no willingness to improve," adding, "Considering that this is an important time for expanding the base of the Korean art market and stepping into the global art market, this is concerning." He continued, "Auction companies should humbly accept these criticisms and actively engage in discussions for coexistence."

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