Since the 2000s, the Korean art world and art market have undergone remarkable expansion, growing significantly in scale.

This growth is reflected in the dramatic rise of the domestic art auction market over the past 24 years. According to research conducted by the Korea Art Price Appraisal Association (Chairman Kim Young-Seok) and Art Price (CEO Ko Yoon-Jeong), the market has expanded 1,830 times during this period. As of 2022, the total auction sales amounted to approximately $1.81 billion USD (KRW 2.5354 trillion), based on an exchange rate of 1,400 KRW/USD.

The foundation of the modern Korean art auction market dates back to 1998, when the first domestic art auction house was established. At that time, the market size was $1.29 million USD (KRW 1.8 billion)—a modest figure compared to its later growth. Over the following decades, the market continued to expand, reaching a record high of $2.35 billion USD (KRW 3.294 trillion) in 2021, marking the largest total auction sales ever recorded.

However, this growth was not without fluctuations. The Korean art auction market has experienced notable peaks and downturns over the years. The first major peak came in 2007, when total auction sales surged to $1.33 billion USD (KRW 1.859 trillion), reflecting a period of strong demand for artworks. Another significant surge occurred in 2018, with sales reaching $1.52 billion USD (KRW 2.13 trillion). The most substantial peak, however, was in 2021, when the market hit an all-time high of $2.33 billion USD (KRW 3.257 trillion), demonstrating unprecedented growth.

At the same time, there were also notable declines in certain years. In 2009, the market saw a significant drop, with total sales falling to $471 million USD (KRW 659 billion). A similar downturn occurred in 2013, with sales reaching $517 million USD (KRW 724 billion). More recently, in 2020, total auction sales amounted to $831 million USD (KRW 1.163 trillion), reflecting broader economic challenges at the time. While the market showed some recovery by 2022, reaching $1.69 billion USD (KRW 2.361 trillion), it remained below its previous peak.

This long-term growth trajectory, despite periodic fluctuations, highlights the increasing significance of the Korean art market on a global scale. As interest in contemporary Korean art continues to rise, the market's ability to sustain and expand its influence will be a crucial factor in shaping its future. (All values have been converted using an exchange rate of 1,400 KRW/USD.)

As the global art market seeks to expand into new territories, major international art fairs are now regularly held in Korea.

Thanks to this, Korean artists are gaining more attention on the international stage, and the status of K-Art in the global art scene has undeniably risen compared to the past.

However, despite this external growth, a closer look at the Korean art world reveals that many chronic and outdated problems remain fundamentally unchanged, just as they were twenty years ago.

One of the most glaring examples is the auction system, which, despite two decades passing, still operates in the same rigid manner. Consistency can sometimes be a virtue, but in an era of rapid change, failing to adapt to new trends means inevitable decline and eventual extinction.

In the past, auctions and art fairs primarily served as secondary markets, circulating artworks that had already entered the market. But today, the landscape has drastically shifted—artists can now debut and even rise to stardom through auctions and fairs. While museums still play a crucial role in identifying and elevating talented artists, the reality is that even those who have gained recognition through prestigious institutions can struggle to sustain their careers if the market turns its back on them. The art world has entered an era of radical upheaval.

The Reality of Korean Auctions Today

The auction results from late last year and early this year are not just disappointing but even disheartening. The featured artworks feel indistinguishable—it's hard to tell if they were auctioned last year or this year, as the same artists and similar works keep appearing. As a result, auction outcomes have become highly predictable, with little variation.

Why is this happening?

The Korean auction market operates within a repetitive and exclusionary structure where only a select few artists' works are continuously circulated. Emerging artists have virtually no opportunity to enter the market, and even highly skilled mid-career artists are completely ignored by the auction system. Instead, low-quality works from the same well-known artists are repeatedly put up for auction, catering to a narrow market demand.

Collectors, in turn, continue buying and selling works from the same familiar names, reinforcing a self-perpetuating cycle that traps the auction market in stagnation.

When the selection of artists remains this limited, the auction market risks becoming like an ecosystem suffering from inbreeding—vulnerable to collapse at the first sign of external difficulty or economic downturn. In such a rigid environment, rather than serving as a dynamic marketplace, auctions merely function as last-resort clearance sales. Given this reality, it is difficult to imagine Korean auctions successfully competing on the international stage.

The Root Causes of Korean Auction Stagnation

The stagnation of Korean auctions is not merely a result of economic downturns. The real issue lies in the outdated operating methods of auction houses and their inability to adapt to the changing times.
 
A Closed System Favoring a Select Few Artists

Korean auctions operate within a narrow framework, continuously recycling the same few artists' works. Rather than discovering new talent or expanding the collector base, they rely on repeatedly selling similar works by the same names.

Most buyers do not evaluate artworks based on their intrinsic value but rather on the artist’s market reputation, reinforcing a cycle that prioritizes name recognition over artistic merit. This outdated approach exacerbates market stagnation, and when prolonged economic downturns hit, the consequences become even more dire.

As a result, even works by famous artists often lack artistic depth or innovation, as the auction system prioritizes commercial appeal over artistic quality.

Although Korea has many artists producing exceptional work, auction houses lack the expertise—or the courage—to introduce them to the market. Instead, they function more as sales teams focused solely on maximizing turnover rather than fostering an ecosystem of artistic growth.

Lack of Expertise and Short-Term Profit Focus

Like any market, the art market operates under capitalism—where anything that sells is deemed fair game. Even major international auction houses sometimes inflate the value of lesser works to entice buyers. However, they still play a role in reflecting contemporary art trends and shaping the market. If you browse their auction catalogs, you will find a curated selection that, in essence, documents a small but significant chapter of art history.

Now, take a look at Korean auctions. The same artists appear year after year, with little to no variation.

Korean auction houses are fixated on short-term sales figures and hammer prices, neglecting the long-term sustainability of the market. Most auction house staff lack expertise in art appraisal, market analysis, or curation. Without these fundamental skills, auctions remain nothing more than simple marketplaces rather than institutions that contribute to the evolution of the art ecosystem.

Collectors, caught within this framework, perceive auction-listed artists as the only "safe" investment options. However, many fail to recognize the true value of the works they purchase, leading to a vicious cycle where artistic merit is sidelined in favor of speculative buying.

Reforming the Korean Auction Market

At this rate, it is difficult to expect sustainable growth or international competitiveness from the Korean art market.

To transform auctions from mere marketplaces into catalysts for a healthy and evolving art ecosystem, auction houses must go beyond relying on a handful of famous names. Instead, they must curate diverse selections that reflect the evolving trends of contemporary art and prioritize the artistic value of works over market-driven popularity.

For the auction system to support the broader art ecosystem, it must open its doors to a wider range of artists and styles. The market should no longer be dictated by a small group of commercially viable artists, but rather by a more dynamic and artistically enriching selection process.

Strengthening Expertise and Overhauling the System

Auction houses must invest in training professionals with expertise in art appraisal, market analysis, and historical context. Establishing a reliable authentication and evaluation system will help guide collectors toward more meaningful acquisitions and reinforce Korea’s reputation as a serious player in the global art market.

Korean auctions cannot afford to delay change any longer.

While the current domestic and global economic climate is undoubtedly challenging, blaming the sluggish auction market solely on economic conditions ignores the core issue.

Historical data on the art market suggests that, regardless of economic fluctuations, art investments have consistently outperformed stock markets in long-term returns.

However, in Korea, the art market has been reduced to a short-term speculative playground, where artworks are traded indiscriminately without regard for their quality or cultural significance. This structural problem has led to the erosion of trust in the auction system.

Unless the operational framework of Korean auctions is fundamentally reformed, the country’s art market will follow the path of Japan.

In Japan, there is no longer an active "art scene"—only "art" remains. This means that Japan has ceased to function as a producer of contemporary art and has instead become merely a consumer of it.

Currently, Korea is the only country in Asia capable of maintaining its role as both a producer and a hub for contemporary art. The country still has the talent and capacity to shape the global art discourse.

However, if the current state of the auction market persists for another decade, Korea, too, will lose its status as a producer and simply become another passive consumer of art.

The inability to sustain one’s own cultural production is a grave failure. A nation that cannot create its own culture will ultimately have to import the ideologies and artistic visions of others, reducing itself to a cultural satellite or, worse, a spiritual vassal state. The fate of Japan serves as a clear warning.

For auctions to survive, they require not just change but a full-scale transformation. The time for hesitation is over.

Auctions must evolve beyond mere transactional marketplaces to become vital platforms that sustain and nurture the broader art ecosystem. Auction houses must revolutionize their selection criteria, and collectors must move beyond speculative buying to become true patrons of art.

Paradoxically, this is the only way to ensure that both financial gains and cultural prestige are achieved.

Korean auctions must fundamentally reset.

Now, more than ever is the perfect moment for transformation. If change is not enacted now, there is no future for Korean auctions—nor for the broader Korean art market.

Jay Jongho Kim graduated from the Department of Art Theory at Hongik University and earned his master's degree in Art Planning from the same university. From 1996 to 2006, he worked as a curator at Gallery Seomi, planning director at CAIS Gallery, head of the curatorial research team at Art Center Nabi, director at Gallery Hyundai, and curator at Gana New York. From 2008 to 2017, he served as the executive director of Doosan Gallery Seoul & New York and Doosan Residency New York, introducing Korean contemporary artists to the local scene in New York. After returning to Korea in 2017, he worked as an art consultant, conducting art education, collection consulting, and various art projects. In 2021, he founded A Project Company and is currently running the platforms K-ARTNOW.COM and K-ARTIST.COM, which aim to promote Korean contemporary art on the global stage.