The Korean art auction market remains entrenched in a severe downturn, struggling to keep pace with the global recovery in art sales. According to the Korean Art Appraisal Research Center’s latest report, released on November 6, the cumulative auction value for nine domestic art auction companies in the third quarter of 2024 totaled 23.75 billion KRW, marking a 26.19% drop year-on-year. This is the latest in a series of declines, casting doubt on the immediate recovery of Korea’s art market.
Among Korea’s leading auction companies, Seoul Auction and K Auction reported declines in their total auction values, with sales falling 28% and 12%, respectively. My Art Auction, which specializes in traditional Korean art, faced a particularly steep drop, with a 52% decrease in total sales. Interestingly, while K Auction's offline sales plummeted by 45%, its online auction sales saw a 2.6-fold increase. This shift highlights a growing preference for online art transactions as buyers look for more accessible and often lower-cost opportunities.
The report attributes the current downturn to a buyer-seller imbalance, where sellers outnumber buyers. "The platforms that can handle mid- to low-range priced artworks are positioned more advantageously," stated the Korean Art Appraisal Research Center. As a result, online auctions, which tend to attract price-sensitive buyers, are experiencing stronger demand than traditional offline auctions.
In contrast, international art markets, particularly in Asia and the West, are showing signs of revival. Christie’s Hong Kong fall auction, regarded as one of Asia’s most significant, reported a 35.99% increase in sales compared to last year. Christie’s has weathered the economic downturn by emphasizing iconic works from legendary artists such as Pablo Picasso, whose established reputation and historical significance offer a stable investment even in uncertain times.
While Korea has a roster of respected artists, including Kim Whanki, Park Soo-geun, and Yoo Young-kuk, the report suggests that demand has not yet stabilized around these figures. In global markets, demand for high-caliber artists is often sustained by a robust ecosystem of exhibitions, media presence, and international acclaim. However, in Korea, such institutional support remains comparatively underdeveloped, contributing to the market's ongoing struggles.
The report also underscores that Korea’s art auction market lacks the structural resilience seen in Western markets. “Unlike Hong Kong and other recovering markets, the domestic art auction scene had its weakest third quarter in years,” the report notes, pointing to challenges in institutional foundations and market confidence. In addition, local demand has yet to consolidate around a core group of artists, limiting the market’s stability.
The Korean Art Appraisal Research Center suggests that to foster recovery, domestic art institutions should prioritize major exhibitions featuring renowned artists, which could help stabilize buyer sentiment. Exhibitions that highlight Korea’s most respected artists may encourage domestic buyers to perceive art purchases as enduring investments, reducing market hesitancy.
Experts believe that without an institutional response, the Korean art market will likely continue its downward trajectory. Until there is increased support for exhibitions and events that feature prominent artists, the market's buyer base may remain uncertain, prolonging the recovery period for Korea’s art auction sector.
Sayart / Jason Yim, yimjongho1969@gmail.com
