SEOUL, July 24 (AJP) - South Korea will require galleries, auction houses and other art businesses to register with local authorities beginning July 26, marking the country's first comprehensive effort to bring the commercial art market under a unified regulatory system, the Ministry of Culture, Sports and Tourism said Friday.
The new system applies to six business categories: galleries, art auctions, art advisory services, art rental and sales, appraisal services, and exhibition operators. Businesses must register separately from their standard business registration.
The registration requirement was newly established under Article 18 of the Fine Arts Promotion Act, which was enacted in 2023 and takes effect this year after a three-year preparation period.
The requirement extends beyond major auction houses and established galleries. Online platforms that repeatedly broker art sales, individuals who continuously engage in art sales as a business — including artists selling their own work — foreign galleries operating in Korea, and regularly held art fairs may also be required to register, according to ministry guidance. One-off private sales and temporary exhibitions are generally exempt.
The ministry said the system is intended to improve transparency in an industry where transaction records, auction disclosures and appraisal standards have not previously been subject to uniform rules. It also expects the registration framework to provide a clearer picture of Korea's commercial art market, supporting future policy development.
Registered galleries, auction houses, advisers and art dealers will be required to keep records of the artworks they handle, including the type of artwork, transaction date, title, artist, sale price and seller. They must also provide information needed to administer artists' resale royalty payments.
Auction houses must disclose winning bids and whether buyers have completed payment. They are also prohibited from participating in their own auctions or engaging in practices that undermine fair bidding.
If an auction house offers a work owned or managed by the operator or a relative, that relationship must be disclosed to bidders before the auction.
Separate rules apply to appraisal businesses. Appraisers must remain independent from clients and other market participants and issue appraisal reports using a government-designated format.
They are prohibited from issuing false appraisal reports, conducting sole appraisals of works owned or circulated by themselves or close relatives where conflicts of interest may arise, and accepting compensation beyond appraisal fees and related expenses. They are also barred from offering money or other benefits in exchange for appraisal work.
Businesses that fail to register or violate their obligations may face administrative fines or suspension of operations. However, the ministry will operate a one-year grace period through July 25, 2027, postponing penalties while local governments and related agencies help businesses adapt to the new requirements.
Once the registration system is fully in place, the ministry said it plans to use the data collected to develop policies and support programs tailored to different sectors of the art market.
"The art service business registration system will help build consumer confidence in the art market and support its continued growth," Jeong Hyang-mi, head of the ministry's Culture and Arts Policy Office, said.
Copyright ⓒ Aju Press All rights reserved.
