Kim Whanki, an artist credited with expanding the horizons of Korean abstract art, saw his painting 'Hangari (1958)' auctioned off for 900 million won. The work, which was featured in the July auction at K Auction in Sinsa-dong on the afternoon of July 23, was sold after several rounds of bidding, prompting applause from those present. The news of this successful sale, a rare bright spot in the stagnant auction market, drew gasps of excitement from the audience. Other high-value pieces also found new owners at the auction, including works by Park Seobo (410 million won) and Yun Hyongkeun (230 million won), while fierce bidding wars broke out over pieces valued in the tens of millions of won.

On the afternoon of the 23rd, the July auction is taking place at the K Auction building in Sinsa-dong, Seoul. Photo by Seo Mideum

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At the Seoul Auction held a day earlier, the auction rate reached 71%, setting a new high for this year. Including Lee Ufan's 'Dialogue' (670 million won), Ayako Rokkaku's 'Untitled' (450 million won), and Yoo Youngkuk's 'Twilight' (400 million won), the total transaction amount reached 3.336 billion won. A representative from Seoul Auction commented, "I hope this trend continues until the end of the year," but also expressed caution, saying, "Typically, the auction market tends to slow down after Frieze and Kiaf, so we need to keep an eye on it."

This year, the art auction market has generally remained in a slump. According to the Korea Art Appraisal Association, the total transaction amount in the art auction market for the first half of this year was 57.2 billion won, a 37.6% decrease compared to the same period last year (91.7 billion won). This is the lowest figure in the past five years. The amount has also dropped significantly compared to 2023 (81.1 billion won), 2022 (144.6 billion won), and 2021 (143.8 billion won).

The so-called '7-year boom theory,' once widely discussed in the auction industry, has become difficult to predict since the onset of the pandemic. The art market experienced a much faster boom than expected in 2021 and 2022 due to COVID-19, which increased uncertainty about the seven-year cycle. Although this hypothesis?that the art market rebounds every seven years?has never been statistically proven, the industry has used it as a strategic indicator based on empirical analysis. However, recently, even the validity of this cycle has come under question.

Immediately after the pandemic, in 2021, the art auction market grew explosively, with total transactions soaring to 338.4 billion won. This was due to asset movement caused by stricter real estate regulations and the emergence of artworks as a new investment vehicle, which attracted both the MZ generation (Millennials and Generation Z) and general consumers. In particular, the activities of famous collectors such as T.O.P of Big Bang and RM of BTS, who exerted influence through social networking services (SNS), and the spread of contactless trading environments such as 'online viewing rooms,' also contributed to the expansion of the market.

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However, starting in 2022 (234.5 billion won), the market began to decline, with total transactions dropping to the 100 billion won range in 2023, and falling to the 50 billion won range in the first half of this year. One industry insider commented, "In 2021, many novice collectors with trend-following investment tendencies entered the market, leading to transactions focused more on trends than on artistic value," and added, "Currently, with a significant decrease in buying power, the entire market is in a contracted state."

The outlook is not bright. Typically, after Kiaf and Frieze, which are held in early September, the art market enters another period of stagnation. Another industry source said, "It seems the downturn that followed the COVID-19 boom has now reached its lowest point," and added, "While we hope for a rebound within this year, it does not seem likely."