The Korea Art Authentication Appraisal Inc. (KAAAI) and EMI Laboratory published “Art Market Report 2023” on February 27, providing the analysis of last year’s art market and predictions for this year.

According to the report, a total of 28 offline auctions were held in 2023, with the total amount of sales amounting to approximately 126.71 billion KRW, a decrease of approximately 28.62% year-on-year. The total number of artworks sold was 1,973, a decrease of approximately 15.39% year-on-year. The proportion of canceled entries was approximately 6.45% of the total entries, which was not significantly different from the previous year (approximately 6.17%). The sales rate was approximately 70.44%, a decrease of approximately 8.13% year-on-year. When analyzing only Seoul Auction and K Auction, two of Korea’s leading art auction houses, the total sales for last year decreased by 41.01%.

On the other hand, when analyzing Seoul Auction and K Auction, which mainly deal with Western and international art, and Myart Auction, KAN Auction, and I Auction, which mainly deal with Korean and antique art, it is found that the transactions of Korean and antique art have been stable despite entering a period of adjustment. The three auction houses that focus on Korean paintings and antique art showed results that were about four times higher than Seoul Auction and K Auction in terms of total auction value.

This decline in the Korean art market contrasts with the enthusiasm for Korean art overseas. According to an Arttatic report that analyzes auction markets by country, “despite the enthusiasm for Korean art abroad, art auctions in South Korea are on the decline. The Korean post-war and contemporary art category totaled $9.3 million at Sotheby’s, Christie’s, and Phillips in Hong Kong in 2023, an increase of approximately 18.8% from 2022. Korean artists, especially Park Seo-Bo, Lee Ufan, and Kim Tschang-yeul, gained ground overseas, accounting for about 5% of the 2023 Hong Kong sale. However, the Korean market decreased in the total amount of artworks sold compared to 2022, as interest rate hikes affected the bidding for high-priced artworks.

KAAAI predicts that the Korean art market will remain in a period of strong adjustment in 2024. Unlike the overseas market, which can be optimistic even in the face of negative conditions such as continued political and geopolitical conflicts and tensions, climate issues, etc. The structural limitations of the Korean art market, where transactions were concentrated on a few artists, seem to have been directed toward further narrowing the portfolio of artists in the market during the adjustment period, and it is possible to predict that the art market will be worse than it is now from the fact that it is difficult to find works worth buying in the market.

However, the more difficult the market becomes and the more uncertain the economy as a whole becomes, the more likely it is that works known as prestigious masterpieces will change hands, which is another way to look at the art market in 2024.

This report is available after registering for KAAI EDU (https://kaaiedu.com) and clicking on the top menu – EMI Reports.

References

• 한국 미술품 감정 연구 센터 (Korea Art Authentication Appraisal Inc.)