Site view of 2025 Galleries Art Fair in Suwon ⓒGalleries Art Fair
With the
enforcement of the Art Promotion Act, South Korea’s art distribution
sector—previously operated as a free profession without separate qualification
requirements—will be incorporated into a formal regulatory framework starting
this year.
Beginning July
26, the Ministry of Culture, Sports and Tourism will implement a reporting
system covering six categories of art service industries: gallery operations,
art auctions, art advisory services, art rental and sales, art appraisal, and
art exhibition services. Businesses currently operating or planning to operate
in these fields will be required to report relevant information to their local
governments and obtain a registration certificate. Failure to comply may result
in business suspension or administrative fines.
The government
explained that the purpose of this system is to enhance transparency in the art
market and to establish a structured foundation for industry support. Until
now, art service businesses had been classified as unregulated activities,
making it difficult to accurately assess market size and design effective
policies. Through the reporting system, the government aims to gain a more
precise understanding of transaction structures and overall industry
conditions.
Site view of 2025 Galleries Art Fair ⓒGalleries Art Fair
While there are
growing expectations that the introduction of the reporting system will help
address issues such as forgery controversies and opaque transaction practices,
thereby strengthening consumer protection, there are also significant concerns
that it could lead to a contraction of the market. In particular, critics point
out that the reporting requirement for gallery operations may become an added
burden on business activities.
If key
information such as transaction prices becomes subject to administrative
reporting, issues may arise regarding the disclosure of sensitive business
information and the infringement of collectors’ privacy. Additionally, some
argue that the system is ill-suited to the domestic art market, where private
sales account for a large proportion of transactions.
Details of the
legislation can be found under the Art Promotion Act on the Korean Law
Information Center operated by the Ministry of Government Legislation.
